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Cover aims to fill pay gap

Salisbury Underwriting Services is offering a new product to help employees safeguard against loss of income if they are made redundant and have to take a lower-paid job.

Salary gap insurance, which will initially be available to IFAs via Tobell Insurance Services from September, has been designed to bridge the gap in salary if a policyholder loses their job and is unable to find a new position at an equiv- alent wage.

It will cover the difference between old and new salary for up to two years. It will only pay out once new employment has been found.

The underwriter already offers the salary gap product in Holland.

Salisbury Underwriting Services and salary gap insurance founder Bill Graham says: “There is an appetite here for this type of product, whether in a recession or not, because of the movement and dislocation in the employment market. This is basically career insurance and protecting the equity that people invest in their own career.”

Master Adviser IFA Roy McLoughlin says: “In a world where redundancy cover is increasingly difficult to obt- ain, any product which offers a potential solution is very welcome.”

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