Unemployment insurance is an innovative product that pays out a tax free cash sum in the event that you are made involuntarily redundant. This means that at a difficult time, you will still have some form of income.
Why cover should be considered
When made involuntarily unemployed, popular forms that many people rely on for an income if they lose their own include savings; severance pay (if they received one) and the State. However both of these could let you down. Often the money paid from the State while you are unemployed or incapacitated does not match your own or come near. Secondly, you could have to rely on savings for several months and they could run out.
Redundancy insurance can be the solution and can cost from just a few pounds a month for every £100 worth of protection required.
How long will my policy continue to provide an income?
In the event of a claim, some providers will pay out your benefit for up to 12 months should you remain unemployed for this length of time. However there are providers that might continue paying out on your policy for as long as 24 months if you need the benefit this long. However long your policy lasts it will cease once it had reached its term.
The types of protection for redundancy
There are three different types of cover you can buy. You can choose to take out mortgage, loan or income cover depending on what outgoings you have to make each month.
If you have taken out income payment protection cover in a form or redundancy protection then you will be able to use the replacement income as you wanted towards any outgoing.
If your choice of policy is loan cover, then it will provide you with an income so that you will be able to put it towards maintaining your loan repayments as will mortgage payment protection insurance (MPPI) cover.
You can choose how much of your monthly income, loan or mortgage repayments that you want to protect. This amount will need pre-agreeing by your provider and it is then the tax free payments that you get back each month for up to the term.
Always check for suitability
Before you take out any form of unemployment insurance cover you will have to check the terms of the policy. There are some providers that might add in many exclusions while others could include the most basic exclusions in their policy.
Exclusions you could find in the policy
You will have to be living in the UK, the Channel Isles or the Isle of Man in order to be eligible to make a claim on your policy.
You will also have to be working full time and have been working for at least 6 months prior to you applying for the cover.
Should you be self-employed or have a pre-existing medical condition then you will have to check the wording of the unemployment insurance policy very carefully as there can be limits that will stop you from being eligible to make your claim.
Loan Up To $ 1500 Bad Credit? No Problem! 100% Approval In 1 Hour. No Telecheck. Apply Now!
Rating of instant payday loan
Get Online Application at online payday loans.