According to the Centre for Economic and Business Research unemployment is set to rise from it current level of 2.4 million to 3.8 million, an increase of 58%. That’s far worse than anything the UK has experienced since the Second World War.

Stories like these are leading to a boom in the sales of Unemployment Insurance that pays out tax free cash if you were to be made redundant. Many people are buying the insurance, which can also cover against accidents and sickness, to ensure that they can continue to pay the mortgage or the rent, if the were made redundant. But in actual fact, the cash these policies pay out can be used for any purpose the policyholder wants.

As a guide, premiums are about £3.50 per £100 of monthly income to be paid for a 18 to 30 year old. This rises to about £5 for a 46 to 65 year old.

If you’ve not got Unemployment Insurance don’t leave it too late. If you have any idea that you are about to be made redundant you won’t qualify for a new policy.