As layoffs and downsizing dominate the news and the world grapples with its greatest economic challenges, Bill Graham's Salisbury Underwriting Services Inc. announced today that Salary Gap Insurance, a new protective tool for workers to safeguard against loss of wages, is now available through Tobell Insurance Services Limited based in London. Salary Gap Insurance will bridge the difference in income for up to two years for workers who are involuntarily dismissed and re-employed at jobs that pay less than their previous yearly income. It's the newest financial product to emerge as a result of the troubled economy, and a clear indicator that working families everywhere must go beyond traditional emergency savings funds to insure their lifestyles aren't disrupted through unexpected career turbulence. This product is currently available in Holland through TAF B.V. and is entitled TAF WerkloosheidsPlusplan. Tobell also intends to launch Salary Gap Insurance in the UK shortly.

"In Holland the government has adopted a very rigorous approach to encourage unemployed workers back to work," said Neil Smith, Managing Director of Tobell Insurance Services Limited. "The advantage of this approach is that the percentage unemployed in Holland is lower compared to other countries in the EU. But of course, the downside is that unemployed people are likely to be pressured to accept new employment at a lower salary level. That's why TAF WerkloosheidsPlusplan is an ideal product for the Dutch market."

The concept of Salary Gap Insurance was developed from an idea originally proposed by North Carolina entrepreneur, businessman and attorney Bill Graham, who recognized years ago that the employment market in the United States was becoming increasingly uncertain. Graham observed that employees lived in a persistent state of anxiety due to the changing job market. As a result, even salaried employees who were able to build a solid relationship with an employer through many years of service had concerns regarding their long-term employment. With the acceleration of the world's economic downturn, Graham has convinced many insurers that the perfect storm was developing in the market place for Salary Gap Insurance to be a viable and profitable offering. Moreover, Graham saw there was a clear need on the part of working families for additional protection as they endured market forces beyond their control with enormous risk bearing on their careers and future earnings and the safety and soundness of the household budget.


"I realized that a trend was developing. After people dealt with their dismissal, they were faced with the harsh reality of earning less when they finally landed another job," explained Bill Graham. "You could go out and find another job, but if you are now bringing home less, it could likely turn your life upside down and be an extraordinary stressor on your family and your health. It made perfect sense that we build an insurance product that dealt with this issue, as this is a problem affecting workers across the globe."

Graham established Salisbury Underwriting Services Inc ("SUS") to develop the concept and service all Salary Gap Insurance policies.

How it works:

TAF WerkloosheidsPlusplan alleviates stress and anxiety at home and in the workplace by providing individual employees with supplemental income in the event they are pressured to accept lower paid employment following their involuntarily dismissal. TAF WerkloosheidsPlusplan will be sold as an extension to standard unemployment insurance or as a stand-alone protection. In these circumstances, TAF WerkloosheidsPlusplan pays a percentage of the difference in salaries between the two jobs. The goal is to keep the insured in the same financial position that existed prior to dismissal. The benefits can be used to pay for anything the insured needs, including day-to-day household expenses, health insurance premiums, mortgage or car payments, or even educational expenses for retraining.

The target market for the product is a wage earner within the €25,000 and €100,000 range.

The Basic Cost:

The cost of Salary Gap Insurance varies depending on how much protection the policy holder wishes to obtain.

The average expenditure for Salary Gap Insurance is on par with auto and homeowners policies and in many cases may be less expensive, according to information gathered from The Bureau of Census, the Insurance Information Institute and other sources. The pricing also compares favorably with most life insurance and disability insurance policies.

According to The Bureau of Economic Analysis, the trend in personal savings in the USA has dropped from 5% of a person's income in the mid 90's to 0% in 2005. In the European Union the savings rate was 7% in 2005. Nevertheless, Salary Gap Insurance augments savings protection while supporting financial planning. However, it is by no means suggested that policy holders or any workers save less money.

About Bill Graham and Salary Gap Insurance:

Graham recently spearheaded one of the largest grassroots movements in North Carolina history, which brought 75,000 North Carolinians forward to sign a petition and 1,000 people to a downtown rally in Raleigh. The Raleigh News & Observer recently wrote that Graham's "crusade against the state gas tax has hit a nerve across North Carolina." North Carolina has as a result or the gas tax movement capped North Carolina's gasoline tax, resulting in hundreds of millions of dollars in savings for North Carolina taxpayers.


Graham devised the concept of Salary Gap Insurance years ago when the Pillowtex (formerly Fieldcrest Cannon) plant, a textile mill where he worked during college as a young man, closed after operating for over 100 years. While reflecting on what would happen to the thousands left jobless by the plant closing, Graham had an epiphany which became the blueprint for Salary Gap Insurance. After developing and refining the product for more than five years and numerous discussions with major insurers, the economic climate created a particularly ripe time for Salary Gap Insurance to emerge.

About Tobell:

Tobell Insurance Services Limited is an insurance broker based in London established in May 2007 by Messrs Neil Smith and Michael Till.

Tobell specializes in affinity products and wholesale insurance policies (including Extended Warranty, Financial GAP & Credit Life) for Administrators, Banks, IFA Networks and Motor Dealers throughout the UK, Europe and the Middle East. Tobell also handles After The Event ("ATE") insurance through its subsidiary Consul Underwriting Services Limited.

About TAF:

TAF B.V. is a market leading provider of personal insurance products (including Term Life, Accident Sickness & Unemployment and Impaired Annuity) in Holland. TAF B.V.'s products are distributed via its extensive network of IFAs.

http://www.taf.nl/





Dan Klores Communications, New York

Eva Ross, 212-981-5218

Eva_ross@dkcnews.com

or

Tim Sullivan, 212-981-5234

Tim_sullivan@dkcnews.com

Source: Salary Gap Insurance