Is unemployment insurance the right product for you?
- 21ST AUGUST 2007
Unemployment insurance, or payment protection insurance (PPI) and mortgage payment protection insurance (MPPI) as the cover is also known as, could be a lifesaver for those who qualify to make a claim. On the other hand if you don’t fall into the category of being eligible then its nothing but a waste of money, and it could be a lot of money depending on where you purchased the cover, says an industry expert.
Simon Burgess from specialist payment protection insurance provider British Insurance says unemployment insurance is a very controversial product that has caused much concern over the way it is sold. “If you shop around for cover, rather than being coerced in to buying it from the high street bank or lender, then you should get a quality product along with good advice as your eligibility.
“However if you take unemployment insurance from the high street lender then you will pay as much as 80% more for the premiums and in the majority of cases get very little if any information regarding the product you are purchasing."
Simon speaks openly and doesn’t mince words when he says the protection the high street lender offers is "nothing but a big rip-off”.
A good quality unemployment insurance policy bought from a reliable source such as will pay out a monthly fixed sum of money if you should be unlucky enough to lose your income through becoming ill, having an accident or becoming unemployed. The cover will continue to pay out for up to 12 months which means that you have enough time to get back on your feet and back to work.
The key, says Simon, to getting unemployment cover that is right for you is to shop around for insurance and thoroughly check out the small print for any exclusions before buying.
