Afraid of a salary cut, take an insurance - London, 17 August 2009

Even when times are bad, some know how to make a living out of that. Today the Financial Times reports about a new insurance:

"A new insurance service to protect workers against the possibility of a salary cut will be introduced in the UK next month, as the tough economic environment continues to create a market for innovative financial products."

The insurance does not help you when you actually lose your job, but as long as you are employed, it should work. tells Mr. Graham, a US lawyer who came up with the idea to the FT:

"Mr Graham, a North Carolina-based lawyer, came up with the idea for salary gap insurance when a textile factory near his home closed and many of the workers struggled to keep up financial obligations as they were forced to take less well paid jobs.

"Unlike redundancy insurance, the policy only starts once the holder has found new employment, when it pays out the difference between the old salary and the new."

More at the FT.

What do you think, a good idea or not?