Back in April JPMorgan Chase, the investment bank, predicted that 40,000 jobs in the financial sector could be lost in the next couple of years as a result of the credit squeeze. But, in spite of such ominous tidings, financial advisers say employees are still failing to protect themselves against the financial repercussions of redundancy.

A survey carried out by Prudential found that only one in three adults in the UK has insurance that will provide them with an income if they lose their job.