Mortgage and protection experts have urged those with less job security to put in place insurance to protect against potential post-Brexit redundancies.
Stonebridge Group suggested opportunities exist for advisers to ensure clients are guided through this uncertain period and allay any uncertainties they may have about their current and future financial situation.
The network is working with its advisers and appointed representative firms on how to communicate with clients in the wake of the EU referendum, with a particular focus on remortgage opportunities and the need to have adequate protection cover in place.
With Mark Carney, governor of the Bank of England, signalling a further cut to the base rate over the summer and lenders actively repricing in order to secure business volumes and hit lending targets, Stonebridge stated many existing borrowers could benefit from remortgaging.
In particular, advisers should contact those clients currently sitting on standard variable rates, who are likely to be able to save money in this competitive rate environment, according to Richard Adams, managing director of Stonebridge Group.
Mr Adams said many clients will be nervous about the current direction of the economy and how things might play out.
He said: “Add into this potential fears around the increased likelihood of job losses, and you can forgive them for being wary about what might happen next and the potential negative impact this could have on their individual circumstances.
“Despite the negativity around at the moment, there are a number of areas where advisers can undoubtedly find business opportunities, not least the remortgage market which is incredibly competitive and will continue to move in this direction,” he stated.
“If you are able to save clients money by remortgaging then we would suggest you also focus on bolstering their protection cover, perhaps by using those mortgage savings. Given the circumstances, if now isn’t the time to be talking about protection, then I don’t know when is.”
Meanwhile, Drewberry Insurance stated a natural solution to the increased risk of recession was unemployment income protection, which could payout a monthly benefit for up to one year to cover essential household bills should the policyholder suffer forced redundancy.
The firm pointed out it is vital that any workers wishing to gain this protection do so before any announcement of redundancies has been made at their company, or they may not be eligible to take out cover.
In the last recession, the UK’s unemployment rate rose from a pre-recession rate of 5.2 per cent in April 2008 to a peak of 8.5 per cent in October 2011, amounting to a 63 per cent rise in the proportion of workers out of work.
Drewberry director Tom Conner said if there is a real possibility of being made redundant, then great care is needed when looking for unemployment plans.
“With some insurers, a company announcement of redundancies in the press is enough to make you ineligible, whereas with other providers you would need to have received a formal letter stating that your job is at risk.