Buy peace of mind with an unemployment insurance policy
- 28TH SEPTEMBER 2007
An unemployment insurance policy can bring peace of mind and great financial security in case the worst should happen and you were to become unemployed due to unexpected redundancy.
If you haven’t given any thought as to how you would continue to meet your essential outgoings such as your mortgage, loan and credit card repayments should you lose your job, then you could be leaving yourself wide open to financial problems and if you have a mortgage, you run the risk losing the roof over your head. An unemployment insurance policy would, providing it suits your circumstances, give you the peace of mind that if you lost your income you would give you a replacement tax free sum each month.
The unemployment insurance policy would begin to pay out after you had been out of work for at least 30 days (and up to 90 days depending on the policy terms) and would then continue to pay out for up to 12 months and with some providers for up to 24 months. Cover is sometimes backdated to day one of the claim, meaning that you don’t lose out financially.
You do however have to be very careful where you buy unemployment insurance policy from as premiums vary from provider to provider along with the exclusions within a policy.
The high street lender will typically offer a policy alongside a mortgage or loan but this is the usually dearest way to purchase a policy as Managing Director of standalone unemployment insurance policy provider British Insurance, Simon Burgess is always stating. He says: “The high street lender will often charge extortionate premiums for poor quality cover, and in many cases, sell the protection to people who are not eligible to claim.
“Unemployment insurance can bring peace of mind and security but it has to be bought with your circumstances in mind. There are exclusions which could stop you from claiming so do make sure that you are aware of these before you purchase your unemployment insurance policy.”
