How secure are you in the current economic climate?

You can't open a newspaper or look at the news without another story about a merger, acquisition or closure of a business and the inevitable loss of jobs that follow.

High commitments?

If you have commitments for a mortgage and other loans you can't ignore the risk that your own situation may not be as safe as you believe it to be. The loss of an income to the household can result in missed loan payments and damage your credit rating or, at the worst, the loss of your property.

Little help from the state!

You may qualify for State benefits to help you pay your mortgage. Even so, you're only likely to receive help in certain circumstances and after an initial waiting period. For example:

• You won't qualify if you have a joint mortgage and only one of you loses your income.
• You won't qualify if you have household savings of more than £8,000.
• You may only qualify for help nine months after you become unemployed (unless you took your mortgage out before October 1995, in which case you may get help more quickly).

If you do qualify for State benefits:

• Payments will only cover the 'interest' part of the mortgage.
• Payments will only cover the interest on mortgages of £100,000 or less.

If your mortgage is bigger than this, you will have to pay the interest on any amount over £100,000 yourself.

Help is coming but not for some time yet. The DWP has announced it would be reforming Income Support for Mortgage Interest by shortening the waiting period before Statutory Mortgage Interest is paid from 39 weeks to 13 weeks for new working age claims from April 2009.

The capital limit for new working age claims will also be increased to £175,000 from April 2009, for more information contact your local Jobcentre Plus or visit Government Community News website.

So what are your choices?

There are well established protection policies available that will offer cover in the event of Accident, Sickness and Unemployment.

These can be effective to protect a mortgage that you already have and often allow extra cover for normal household expenses.

They typically pay benefits for a relatively short period (usually 12 months), allowing you to recover from an extended illness or find new employment.

How much does this cover cost?

Premium rates vary and you would be wise to consult an independent mortgage adviser with access to a variety of policies as opposed to buying this from your individual lender which may promote just one.

For the average mortgage cover should be available for a few tens of pounds per month and this is a small price to pay to cover the potential risks involved.

So, don't bury your head in the sand about the risks, make sure you have investigated the cover that you need and put it in place.