A Government green paper that proposes finding employment for people who have been out of work for more than two years stresses the need for income protection (IP), says AXA .
The plans, which would be introduced in 2012, could see people in jobs that will pay less than their previous roles, said Stuart Lawson, AXA protection marketing manager. Mr Lawson added that there would undoubtedly be people who would be unable to cope with a smaller wage given their lifestyle and he identifies IP as the answer.
Mr Lawson said: "The Government is saying that if people are off work, how can we get them back into work. While this could be a good thing from the consumer point of view, if you do get sick you may end up in the wrong job with the wrong income, and thats a double whammy."
Consumers need to think about whether they need to start making their own provisions if this happened, or whether they think they would be comfortable on state benefits alone explained Mr Lawson.




