One of the main reasons for purchasing any sort of protection product is the long-term trend of the reduction in state benefits. For instance, if you fall ill, suffer a serious injury, or become unemployed for any reason, you will not qualify for state help with your mortgage repayments until nine months after you make a claim and then only if you qualify for income support.

Since October 1995 new mortgage borrowers will receive no state help for the first nine months of unemployment or disability. Existing mortgage borrowers receive nothing for the first two months, only 50% for the next four months and then full benefit for mortgages of up to £100,000 provided they qualify for Income Support. The Government themselves estimate that 70% of mortgage borrowers will not get Income Support due to savings, income, or a working spouse or partner.

In 1998 alone, the introduction of a new incapacity criteria resulted in 102,000 claimants being turned down for state benefit. An independent doctor (not your own) will carry out your assessment and you must be incapable of doing any work, not just your normal job, to qualify for state benefit.

Even if you do qualify, there is a reasonable chance that you will not receive the full amount of your mortgage repayment. As a result of this, the government is trying to work with the Council of Mortgage Lenders to encourage people to take out PPI policies for those first nine months when they won't be able to claim benefits.

And if you are one of the lucky ones who receives a payout, state benefits for a single person often amount to less than £60 per week. Could you manage on that? The typical state benefit for two adults with two children is £96 per week; the maximum is £134 per week. Could you support your family on this?