Payment protection insurance (PPI) can prove to be "particularly valuable" to a number of people, according to an expert.
Kelly Ostler-Coyle, a spokesperson for the Association of British Insurers (ABI), has stated that the cover, which pays out in the event of illness or redundancy, is specifically useful in an economic downturn.
She added that the insurance "really comes in to its own in hard times".
"It can give valuable peace of mind as many are unable to cope financially with their commitments when they are off work and looking for alternative employment. That's when PPI can kick in and pay out," she explained.
Ms Ostler-Coyle concluded that it is up to the individual consumer to decide what level of cover they want.
The ABI represents and promotes the interests of organisations in the UK's insurance industry.
According to the body, it has around 400 members which provide 94 per cent of the domestic cover services sold in the UK.
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