Cover against redundancy with unemployment insurance
- 30TH DECEMBER 2007
If you should be made unemployed by way of involuntary redundancy, unless you had a back-up plan to fall upon you might find yourself struggling financially when it comes to keeping up with your essential outgoings, loan or mortgage repayments.
One way of ensuring you will have a back-up plan is to take out unemployment insurance, providing of course that it is suitable for your circumstances. The cover can give an income each month which you can use to pay any essential outgoings such as your loan, mortgage and living expenses.
It is essential to remember that you do have to check the small print and key facts of all policies you are considering. Exclusions which are common include if you only work part time, if you are of retirement age, are self-employed or have a pre-existing medical condition.
There has been a lot of controversy regarding payment protection products since the Citizens Advice made a super complaint to the Office of Fair Trading (OFT) in 2005 and the subsequent investigations by both the OFT and the Financial Services Authority (FSA). However, while there are still many problems it has to be remembered that it is not the products which have been at fault but the firms selling the cover without the necessary experience.
When thinking of taking out a policy getting quotes from a standalone specialist is always the best way to secure a quality policy along with the information needed to determine if the cover is suitable. Standalone specialist British Insurance can save you up to 40% on the cost of mortgage insurance and 80% on loan payment protection.
Unemployment insurance can be a safety net on which to fall if you are made redundant but only if you have ensured it is suitable for your circumstances before you buy.
