Critical illness cover and payment protection is going to be crucial in the credit crunch with unemployment rising, but not enough Brits know about payment protection.

If you have a secured loan, a mortgage and other financial responsibilities, you need to safeguard your finances and improve your knowledge of life insurance policies such as income protection and critical illness cover.

As the affects of the credit crunch deepen and with recession likely to take hold, protection could prove vital if a person finds they are unable to work due to illness or unexpected redundancy. It could be the difference between surviving the crunch or becoming repossessed.

So talk to your mortgage adviser about taking out some protection. But, you ask, how can you afford protection when you are struggling to keep your head above water in this difficult period? The question you should be asking yourself is how can you not afford it? Most Brits, particularly those with multiple secured debts, would not be able to survive for more than a few months if they were ill, incapacitated or made redundant.

Think about it – if you were not earning money for a long period could you make ends meet? It might happen, and everything is less sure as we face up to a lean 2009.

A mortgage adviser will be able to help you put a plan together that will make sure you can afford the cover, and your current responsibilities. Many people will face repossession next year – up to 75,000 according to the Council of Mortgage Lenders – so take on some protection and avoid being one of those statistics.

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