Have you taken the time to think about how your family would get by financially if you are forced out of work? Involuntary redundancy is a very real issue for many people in today’s economic conditions. Although thinking about the prospects of losing your job is unpleasant and may seem pessimistic, it is actually practical and responsible to cover your family. Unemployment insurance is an affordable insurance protection that provides a replacement for your monthly income if you are faced with involuntary redundancy. This cover is your best protection since the State has very restrictive criteria for getting unemployment assistance, and the amounts received are often very small.

There are three basic types of insurance products that you can consider to provide you with unemployment insurance. Mortgage payment protection insurance, loan payment protection insurance, and income payment protection insurance make up an umbrella of products known as the payment protection insurance sector. These covers essentially serve as redundancy cover by paying benefits to you when you are involuntarily forced out of work.

The benefits and conditions of the typical redundancy insurance product

The three types of payment cover have very similar intentions. However, there are some subtle differences in purpose. Mortgage payment insurance is targeted at saving your home by replacing lost income so you can make mortgage repayments. Loan payment cover protects your assets and credit rating by giving you support to meet debt obligations each month. Income payment cover is essentially a benefit for use in meeting all of your financial obligations and needs each month. Regardless of the product or purpose, though, the basics of the products and terms and conditions are very comparable. Each is designed to keep you afloat during tough times. There are some common elements to redundancy cover that you must consider to get the right plan.

The first major consideration in selecting your best unemployment protection is what the length of the insurance plan is. Typically, cover runs for either 12 months or 24 months. It is important to consider how long you think you will need protection before agreeing to a plan. If you are confident in your ability to quickly find other work, a 12 month solution might work for you. If you are uncertain or operate in a struggling industry, the 24 month insurance might be right for you.

How soon do you need your replacement pay cheques after losing your job? Obviously, most people want to get paid sooner rather than letter. There are some insurance plans that begin paying benefits 30 days after the covered event. Other products begin benefits either 60 days or 90 days after the insured event. Be concerned with this factor as it is a vital financial issue. If you are on a tight monthly budget, can you really afford to wait? If not, focus on a 30 day benefits starting point. If you have a nice savings account or another source of income, a 60 or 90 day payout plan might be okay.

How much cover do you want, or need? The amount of your protection is up to you as the consumer. Most people are interested in the maximum allowable protection as it replaces a significant portion of your normal income. Others may have other income or funding and want to save premium costs by choosing a lower coverage amount. The maximum allowable monthly benefit payment is £1500 or 50 per cent of your normal monthly gross income. The payments are non-taxed so your net pay is much more significant, thus helping you better manage your bills and debt payment obligations.

Coverage eligibility and levels of protection

Always be sure you are eligible to collect the benefits of an insurance plan before agreeing to purchase one. This is common sense, right? Unfortunately, many people not eligible to get benefits under the terms of payment protection policies have been sold products in the past by institutions. This may sound unethical, and it is, but you need to be aware of the basic eligibility requirements to protection yourself. To be eligible for cover you must be employed full time for six months. This means that retired people, part time employees, and those with pre-existing medical conditions can not collect benefits from the insurance. Yet, all have been targeted by unscrupulous sellers looking to add-on to loan products.

Assuming you are eligible for unemployment insurance, there are some additional benefits or covers you may want to consider. Some providers offer ASU (accident, sickness, and unemployment) insurance solutions that offer broader protection for the three insured events. You can also usually opt to cover just one or two of the events. Some people might just want unemployment protection if their employer already has an adequate sickness scheme to cover health issues. Others may just want sickness and accident protection if they are not concerned about long-term redundancy. Be confident you can quickly find work before going this route.

Another great add-on benefit that many people find useful is carer cover. Carer cover provides replacement income protection in the event that you have to leave work to take care of a sick or injured family member. Of course, again, no one wants to be in this situation, but it does happen. Give yourself the flexibility to leave work and care for your loved one through the extra protection of carer cover.

Where to buy unemployment insurance and the cost

Unemployment cover can be extremely expensive, or it can be quite affordable, the trick is to know where to buy protection and what to watch out for. Financial institutions and independent insurance specialists are the two common sources for PPI products. Institutions are notorious for their expensive insurance solutions. They also have a reputation for pressure selling and deceptive selling tactics. In fact, a 2005 super complaint by leading consumer advocate group, Citizen’s Advice, brought to light some of the more common mis-selling approaches used by large banks.

Financial institutions are companies that deal in a multitude of financial products. Thus, they are more generalists and not specialists at selling insurance. Banks have historically sold payment cover products in combination with loans, like mortgages, personal loans, and credit cards. This has led to unfair selling such as pressuring of borrowers to buy protection from the lender. Some have even deceived the new borrower by building the expensive insurance into the loan repayment to spread out the cost, then hiding the details of the protection in the fine print of disclosure documents.

Many high street companies were also found guilty of selling products to those people mentioned as ineligible to collect benefits from unemployment plans. This gross mis-selling led to fines from the Financial Services Authority (FSA) following its investigation of the payment protection sector. The FSA conducted its investigation and delivered its findings in early 2007, after reacting to the Citizen’s Advice complaint. By fining well known companies on the high street, the FSA sent a strong message that mis-selling would not be tolerated.

The Office of Fair Trading (OFT) also investigated the sector following the super complaint. It later referred payment protection insurance to the Competition Commission for a more in-depth review. The Commission subsequently released several recommendations for improvements within the sector. The first major issue the committee targeted was the bundling of loans and insurance products that often was unfair to consumers. A 7 day waiting period was placed on lenders before they could sell unemployment insurance to a new borrower. This gives the consumer more time to explore the market to get a more fair deal on cover.

There are more fair deals to be had in the open market. Independent specialists are not only more knowledgeable about the insurance products. They also offer much more affordable rates. Typically, a standalone provider sells loan payment protection for 10 times less what an institutions sells it for. Similarly, mortgage payment cover is a bout four times less expensive, and income payment insurance is about five times less expensive. If you consider the increased knowledge and better service you usually get through a specialist provider, and add the significant savings, it is clear that insurance specialists offer the best value for redundancy cover.

Conclusions

The first thing to remember about unemployment insurance is that you need it to protect your family. Unless you have adequate funding from other sources besides your full time job, or you want to chance getting a little assistance from the State, the peace of mind that comes with redundancy insurance is your best option for protection. Here are some other things to remember when looking for the best value in protection:

• Be aware of the length of time, benefits starting point, and maximum cover offered by plans you are considering for purchase
• Along with involuntary redundancy, you can cover accidents and illness
• Consider the added protection offered by carer cover
• Look to independent specialists for the best value in unemployment protection as they have expertise and often offer much more affordable premium rates.

You can take out unemployment insurance in Manchester to protect your financial interests – the question is really “do you need to”?

The answer to that question will vary from one individual to another but there are a few things worth thinking about before you even try to come up with a response.

Luck usually has very little to do with whether or not you’re going to be made redundant. Your employer could be perfectly profitable and everything apparently going well, then a political or economic decision made on another continent could suddenly mean you were out of a job and without income. Few individual employees are ever able to influence these decisions one way or another.

If you do suddenly find yourself redundant, money is likely to become a problem very quickly unless you either find a new job immediately or have some forms of emergency financial protection in place. Doing nothing in the hope that you’ll find immediate alternative income might be best described as ‘brave’ but perhaps equally ‘foolhardy’.

That’s because if you do start to struggle to find a job, any redundancy pay you received will quickly evaporate in trying to deal with those regular monthly payments for things such as the car, furniture, mortgage, food, clothes and utility bills etc. Once you start to struggle to meet your payments, not only are you going to be suffering the stresses of job hunting but also needing to fight of the threatening letters and repossession activities relating to your goods and perhaps even your home.

You may in effect have three options open to you:

1. You may wish to contact the loan companies, mortgage lender and utilities and explain the situation at the earliest stage. They may be able to offer some short-term help involving reduced monthly payments etc.
2. You may be able to obtain some government help from the social benefits systems and perhaps a very limited form of help specifically for your mortgage.
3. If you have a policy that provides unemployment insurance in Manchester, you will be able to start claiming the financial benefits it provides.

Option 1 above would probably be a sensible step in all cases. Not all lenders or service providers will be willing or able to help but some may be.

Option 2 should also be progressed but a word of warning relating to assumptions may be in order. The social benefits available to the unemployed are set at a low almost subsistence level. They are designed to help feed and clothe people in trouble and they are unlikely to generate sufficient income for you to keep meeting mortgage, car, furniture and credit card repayments.

The government’s help for mortgages is in fact limited to them paying a percentage of the interest of the repayment. They will not pay the capital debt and you will have to find the difference between their contribution and the total interest payable that month. Sadly not all lenders may agree to extended periods of interest-only payments anyway, so your home could be at real risk of repossession.

Unemployment insurance in Manchester can offer important help. It is a form of policy that will generate income for you of up to 1500 pounds per month (or 50% of your gross income if that is smaller) that you can use to help you survive and live a relatively normal life while you search for that new job.

These payments will continue for the period you’re unemployed up to a maximum of 12 months or even 24 months in the case of some policies. You can take out the policy so that the amount is paid directly to you as a form of temporary income replacement or it can be paid directly to your mortgage lenders or credit card companies etc.

This form of cover exists to protect you against those unexpected events you could not have foreseen or controlled. Understandably, they cannot protect you against your own decisions so will not pay out for things such as resignations, voluntary redundancy, career breaks, normal pregnancies or some forms of dismissal.

This insurance is widely sold by loan companies and banks and they are very keen to exploit their existing relationships with their customers to sell more. Unfortunately their unemployment insurance in Manchester is typically several times more expensive than the same insurance purchased on the open insurance market.

There are specialist providers of unemployment insurance in Manchester that operate on the Internet and their prices will often be far cheaper and more competitive than those of the lenders. Having a look at their web sites might be a good idea the next time you have a few minutes to spare.

There are some people who believe unemployment insurance in Liverpool is provided by the government.

In one sense they’re partly right. If you are made redundant and lose your income then some government help is available through the standard state benefits system. It may though be totally insufficient in terms of helping you maintain your current lifestyle – particularly if you have payments to make each month for things such as cars, HP, credit cards and the mortgage.

It is the case that for mortgages there is additional government help available for those in danger of losing their home. Even this though is severely limited. It only pays a part of the interest of your monthly repayments and you will have to find the balance. That may not be easy if you are without income. It also assumes that you have been able to negotiate with your mortgage lender terms that allow interest-only repayments for a period and not all lenders may be sympathetic.

It’s also worth remembering that government help with mortgages is linked to your savings. If you have savings above a certain level the government will expect you to use those up before it offers its limited aid.

For many people the thought of relying exclusively on a combination of government aid and luck, is not a pleasing one. If you’re made redundant you may feel that you would wish to spend the bulk of your time fighting to find that new job rather than fighting to keep your house and possessions from repossession.

If you would prefer to have more control over your destiny in such difficult circumstances then unemployment insurance in Liverpool may be part of the answer.

There is a range of insurance policies that could help. If you are made redundant they can pay you a monthly sum until such time as you have found new employment up to a maximum of 12 months (24 months in the case of some policies). The amount you receive will depend upon the policy you originally selected and paid for but typically it can be as high as 1500 pounds per month or 50% of your income (whichever is lowest).

For a small additional sum, the risks covered can be extended to include sickness and accidents as reasons for a loss of income.

The distribution of the money can be varied. A policy can be taken out to cover your mortgage only and the sums could be paid directly to the lender. This could be extended to cover other payments such as credit cards etc. It is also possible to purchase cover that will provide you with a monthly income that you can spend as required on your monthly expenses and lifestyle.

These policies could help you keep your home and your possessions around you. If you are unable to keep up repayments on a debt it is usually a good idea to contact the lender at the earliest date to notify them and ask for help but if they are unwilling or unable to be flexible or can offer assistance for a very short period, then unemployment insurance in Liverpool could be the equivalent of a financial lifejacket.

You can purchase such unemployment insurance in Liverpool policies from specialist providers of insurance that operate on the Internet. They will have a wide range of such policies and can also help clarify anything that’s unclear. You can also purchase similar policies from many of the lending organisations but you should be aware that their prices would usually be several times more expensive than those of the specialist providers.

Unemployment insurance in Liverpool, like all insurance, will have its own exclusions and conditions. For your own protection it may be a good idea to read these closely but they are usually relatively straightforward. Some typical examples may include:

The applicant

• You will need to be in verifiable permanent employment and working more than a specified number of hours per week.
• You may have to show that you have a consistent work history and do not spend significant time working outside of the UK
• If sickness and accident cover is included, you do not work in a highly dangerous occupation or have an existing serious medical condition

Claiming

• This type of policy will usually exclude claims for pregnancy, resignations, voluntary redundancy, some forms of dismissals, career breaks – and any other loss of income situations you have created.
• There may be a ‘qualifying’ period whereby the policy must be held for some months before a claim could be made.
• You may have to provide evidence of the reason for your unemployment and during the claim period, ongoing evidence that you are unemployed and seeking work (or a medical certificate confirming you cannot do so)

Unemployment insurance in Liverpool could make the difference between redundancy being a major trauma or a financial catastrophe. It may be a good idea to find out more.

Are you considering taking out unemployment insurance Glasgow cover? If you are then do you know that you can choose to take out your policy with an independent provider? Many who are considering a policy believe that they have to take it with the lender on the high street; however you can save a great deal on your chosen form of cover if you choose to shop around.

What is unemployment payment protection?

Unemployment protection can be taken to protect the repayments of your mortgage, loan or your essential outgoings. You could choose the most suitable type of policy based on what you have to pay out each month. If you then become a victim to redundancy you could make a claim on your insurance once the period of deferment had passed which would depend on your provider. You would then continue to receive tax free income for a period of time which again is provider dependent and which needs to be checked when you apply for the policy.

How long might I have to wait before making a claim?

With some providers you could have to defer from making your claim on your unemployment insurance Glasgow policy until the 30th day that you have been unemployed but with others you might have to stand to the first 60th or even the 90th day with other providers.

As you can see the terms differ considerably with providers so you really have to check them carefully when applying for your policy. Should you have to wait for up to the 90th day before making your claim then you could have fallen behind on your essential outgoings which could include your rent, mortgage or loan repayments and your utility bills? Therefore you could have more peace of mind knowing that you could claim after just 30 days.

How long could I continue claiming on my policy?

Your policy would payout your income over a period of time and then the benefits from it would simply cease. With some providers you could continue claiming on your involuntary redundancy cover if you needed to claim of course for up to as long as the 12th month with some providers. However with others you might have 24 months of benefit to fall back onto if you should need to continue claiming for that length of time.

You would need to consider that a policy paying an income over a period of 24 months would come with higher premiums than one providing an income for up to 12 months. This would have to be checked at the time of taking out the policy so you can make a fair comparison.

How much would the monthly benefit be?

At the time of applying for your unemployment insurance Glasgow cover you could choose how much of your income, loan or mortgage repayments you want to protect. The provider would need to agree to this amount and this then becomes your tax free income for over the term of the policy if you had to make a claim and if you needed to claim for that long.

For example if you were taking out income payment protection then you could generally choose to cover up to half of your gross monthly income or £1,500 whichever amount worked out the least. You would have to check with the provider to find out what their limits are.

Do you want to add in incapacity cover?

Unemployment protection would of course only be there for you to claim on in the event that you lost your income to redundancy. If you wanted to take out a policy that would allow a claim to be made if you fall ill or suffer an accident then you could look into paying a little more each month in premiums and have the security of claiming for either event.

You could also check with the provider at the time of applying for your redundancy insurance Glasgow protection to find out if they would allow you to make a claim if it was one of your close family members who were to become a victim to incapacity. Some generous providers offer carer cover in with your policy but not all will so always check.

Checking for suitability of the protection

It does not matter who you choose to take out your unemployment insurance Glasgow policy with there will be some exclusions which would have to be checked against your lifestyle. There might be just the most common exclusions or there could be many more depending on the provider so along with checking these to be sure you could claim you would also have to check the terms of each policy you are considering.

Have you considered what to do to protect yourself and your family from the financial challenges that come with involuntary redundancy? What about incapacity for injury or illness? Many people have not because they assume they are secure in their job, or they feel comfortable that the government would support them during unemployment or incapacity. Job security is becoming harder to find these days and the reality is that State assistance is not as common as you might think. Your best alternative for financial security is to buy unemployment insurance in Northern Ireland.

You can do this through the purchase of a product from an umbrella of solutions known as payment protection insurance. This will protect you against the financial fallout of being made redundant, and for a further fee, sickness and accident insurance can be added on too.

Mortgage payment protection, loan payment protection, and income payment cover are the three products that form the payment protection insurance portfolio. Collectively, these products serve as unemployment insurance in Northern Ireland as each pays monthly benefits that replace lost job income from a covered event. Individually, they have more specific functions. Mortgage cover is commonly used to protect your home by enabling you to keep up with monthly mortgage repayments. Loan protection is used to manage personal loan and credit card debt. Income payment cover is generally beneficial with regard to keeping current with bill payments and other financial obligations.

An overview of unemployment insurance in Northern Ireland

When you look to buy a payment cover policy, there are some important components of the products that you have to closely scrutinize to make the best choice. One is the length of your prospective benefits payout. Some policies would pay you benefits over the course of 12 months, while others payout for a 24 month period.

Another important factor is the starting point for benefits. Some policies begin to pay after 30 days, which is nice for people that rely on monthly income to survive. Other plans would deliver the first benefit payment after 60 or 90 days, which might work if you have some savings or other income sources.

Your maximum benefit is usually the lesser of 1500 Pounds or half your regular gross monthly income, whichever is less. Some people try to save premiums buy taking on a lesser amount of cover. This is not generally advised unless you have savings or other sources of funds to help sustain you.

In order to even collect benefits from payment cover products, you usually have to be employed full time for a period of at least six months. This product portfolio is not directed at people that are retired, employed part time or those that have pre-existing medical conditions.

Standard events protection by payment protection

Involuntary redundancy is a primary protection offered by unemployment insurance in Northern Ireland. However, as noted, you can usually add benefits for incapacity due to accident or illness that leaves you unable to work for an extended period of time.

Some people don’t need the benefits for incapacity because their employers already offer adequate support for such situations. Others do want to protect themselves from these situations, but decide to save money by not taking on redundancy benefits. This is somewhat risky, but might make sense if you have savings and can quickly find new work.

Comparing opportunities to buy payment cover

There are two basic providers of unemployment insurance in Northern Ireland. One is financial institutions, and the other is independent insurance specialists. As consumers become more aware of this insurance sector, they are recognizing that there is really no comparison in terms of the value offered by independent insurance specialists to that of institutions.

Financial institutions controlled payment protection for years because of their ability to bundle their expensive policies with loan products and pressure unknowing consumers into taking it on. Thanks to a 2005 super complaint by Citizen’s Advice, this practice has largely been deterred. The complaint was referred by the Office of Fair Trading to the Competition Commission, who concluded its review with several recommendations for improvement in payment protection. One of the resolutions placed a seven day ban on the sale of payment cover to a new loan customer. This frees consumers to shop the open market and take advantage of more affordable plans from independent providers.

Independent specialists have maintained a better reputation for service and support. Typically they also have better rates on unemployment insurance in Northern Ireland. Mortgage cover runs about four times less expensive. Income payment cover is around five times cheaper. Loan payment protection can be as much as ten times cheaper from a specialist, versus a financial institution.

Being suddenly out of work due to a series of cutbacks is never a pleasant experience, but for those who have regular and firm commitments, it can lead to a crisis. Depending on the financial climate, getting a new job can either be straightforward or a real challenge, which can mean somebody is without an income for an extended period in some circumstances. Should somebody be out of the market for weeks or months, they can fall behind with things like debts, rent or mortgages. Some people may be lucky enough to fall back on to large savings, or have other interests set aside which they might be able to call on, but other people may not be so fortunate. This is where some workers start to wonder how they would manage if they were ever made redundant, and why unemployment insurance in Leeds has taken a new role in the minds of consumers.

Personal financial insurance is by no means a new thing, it has been around for a while but for various reasons has been in and out of the news. Unemployment insurance is part of the payment protection insurance industry, which has attracted its fair share of news coverage in recent years. This is mainly because some forms of this kind of cover were sold inappropriately by banks and other lenders to people who are taking out loans.

This form of insurance as a sector is designed to provide people with short-term cash support to pay debts and other commitments in the event that they lose their income through something which was beyond their control. Loan insurance, sometimes actually tacked on to loans, can be charged at expensive prices when it comes to the types of deals offered by lenders and banks. But there are all sorts of other channels when it comes to shopping around for the right deal, and independent specialists can be a good bet for loan or unemployment insurance.

Unemployment cover can be bought for a straightforward premium from all sorts of insurers and will pay somebody a monthly benefit tax-free in the event that they are let go by their employer. To qualify for payments on a policy like this, somebody must have been made redundant and not have accepted an offer of redundancy or simply resigned from a job. They must also have had no notification that they were going to be let go before they set up a policy, otherwise it can be invalid.

How it works

Once the cover is activated the insurance company simply pays the person in question a monthly tax free cash sum to go towards some of their commitments. It may or may not be enough to cover all of their essentials, there is nearly always enough to cover a decent slice. It has become popular because it can be far more effective than the state benefit system, which can be extremely ungenerous when it comes to unemployment benefit. Likewise many people have found that their redundancy packages run out quickly and that this kind of insurance is much better at supporting them while they hunt for a new job.

A set cash sum arrives in someone’s account every month while they carry on job hunting and only stops after their search has been successful or the policy payout period is reached. Many deals keep paying out for as long as a year, all the way up to 24 months with some deals.

The cost of unemployment insurance Leeds is often defined by how much somebody would get per month, and this is up to them as they can often normally name how much they would want per month on a deal. So somebody who would get three or 400 pounds per month after a successful claim will normally pay less than somebody who would get eight or 900 pounds per month, depending on the deal and provider.

As it is a payment protection insurance product, unemployment insurance in Leeds does not payout a first payment immediately after a successful claim but 30 to 90 days afterwards depending on the level of policy and its terms and conditions. This is something to look out for as if you are taking out a policy with a longer waiting period you could bear in mind that you may have to briefly find some other financial source until the payouts kick in, perhaps relying on the kindness of a relative or using up savings if needed.

Because unemployment insurance in Leeds is related to payment protection deals, it is often possible to expand its so that it covers against more things than simply redundancy. For example, you can often upgrade a deal so that it will result in payouts in the event that you lose your income due to a long-term injury or accident, for example. Some premiums cost as little as a few pounds per £100 worth of protection, so many people have found it well worth the money and a real stress and hassle saver if they need to call on it.

Protection against redundancy may for many people stretch little further than limited savings and an updated CV, but for others there are alternative options which can kick in when they are let go. For example, unemployment insurance in Scotland can be bought for a cover premium and pays a regular cash amount into someone’s account after they are let go, often until they are working again. This is often used by a policy holder as a way of supporting them and helping them to pay some of the regular, essential costs which would otherwise be easy to keep up with if they had their wages.

Personal insurance like this has evolved because of some of the limitations of redundancy rules in the UK. For example, people of a certain age and who have worked for a company for a limited amount of time can expect to be entitled to a relatively small pay off which in many cases may not support them for long. For example, those under the age of 22 can expect just half a week’s pay for every year they have worked for a firm. Then there is the welfare state system which is really designed so that people can get support with feeding themselves rather than keeping up with rents, mortgages, and all the regular bills.

Peace of mind

Unemployment insurance in Scotland provides an alternative by letting somebody name a sum on their policy which they would receive each month after a successful claim. This means somebody can get tax-free cash paid straight into their account until they are working again. The payouts on an insurance policy like this are not a form of credit, and they continue either until the person is in work again or until the policy payout period expires.

So for example, somebody with a 12 month payout plan and protection of £600 per month would get £600 per month paid into their accountuntil they were working again or until they happen to reach the 12 month limit. Of course somebody will have to provide evidence that they have been made redundant to claim successfully and have their claim approved formally, but this is the basic way in which this kind of insurance works.

How much someone gets can be named by them on their policy when they take out the insurance. However of course there will be a limit above which somebody can’t protect their income any further, so companies might say you cannot insure more than £1,500 pounds per month for a set percentage of your income. Also, the more you want to insure each month, the higher your premium might be. This means it can be worthwhile figuring out exactly how much you would need to get by per month if you were made redundant or lost your income. So it could help to make a list of the most important expenses and protect all or a portion of this.

How long?

Premiums are often payable on a monthly basis and also relate to how long you have chosen to wait after a claim before a first payout arrives. Although the insurance company would supply the cash straight to your account, it does not arrive on a deal like this straight after you have claimed. Normally the policyholder has to wait 30 to 90 days until the first one arrives, although some firms backdate the cash until the first day they were without their income.

The benefits of getting support like this is not only that they are better than the state benefit system but that the cash they provide can help somebody get peace of mind while they are looking for a new job having been made redundant. This can be a real boost when somebody is trying to find a new occupation and meet their commitments at the same time. Note, however, that policies like this only ever payout if somebody is made redundant involuntarily, as opposed to having accepted an offer or simply walking out on a job. Also, to qualify for a policy somebody often has to have worked in their current position for a set amount of time, perhaps a few months, and many companies also require that the person works a minimum number of hours a week to qualify.

Additional protection

Unemployment insurance in Scotland also comes at different levels, and it can be tailored to cover not just against involuntary redundancy. Some firms will let you insure against losing your income due to long-term illness or injury after an accident, for example, while some provide a carer cover option, supplying payments if you have to leave your occupation to look after a loved one who is ill full time.

Many people have found unemployment insurance in Scotland is a straightforward and cost effective way of protecting their income in the event they face some cuts from their employer which leave them without a job and wondering how they’re going to pay even basic bills. This kind cover also does not have to be bought from high street insurance companies, but is available from a wider range of specialist providers than some people might think, in some cases for much cheaper prices.

Unemployment insurance comes in three different forms depending on what outgoings or repayments you want to protect. Loan cover would protect your loan repayments, mortgage payment protection insurance will cover your mortgage repayments and income payment protection will help towards general day to day costs. A policy can bring peace of mind against the possibility of involuntary redundancy by way of a tax free monthly replacement income.

How does unemployment cover work?

You would choose which form of unemployment insurance is the most suitable for your needs based on what outgoings you have to make each month. Having covered your chosen outgoings or repayments you would then be eligible to claim on your policy in the event that you became unemployed. You would then have an income that would go towards you being able to meet your loan, mortgage or essential outgoings once you had been unemployed for a period of time and continue claiming for up to the term of the policy if needed.

How long would I have to wait before claiming?

With some providers you could make a claim on the on your unemployment insurance after the 30th day, other providers may payout from the 60th and some might ask that you defer from claiming up until as long as the 90th day. Some could date back your monthly benefit to the first day that you lost your income so this would need checking at the time of applying for your policy.

How much money would I get?

You would be able to choose how much income you want back each month when you take out the policy. This amount would of course have to be pre-agreed with your provider and it is then your income which is tax free for up to the term of the cover. You would be able to use this income towards meeting your chosen repayments or outgoings to keep on top of them and not risk arrears or debts building up.

How long would I be eligible to claim this income?

With some providers you would get your income for up to 12 months if you should remain unemployed for this length of time. With others it could be up to 24 months of benefits before the payments would cease. Should you take out a policy that paid out over 24 months then you would have to pay more for the premiums each month than with cover paying over 12 months. Once the policy had reached the term defined in the small print then it would stop regardless of your circumstances at that time.

Checking for suitability

Any form of unemployment insurance comes with at least the most common exclusions. These are what need checking against your lifestyle so that you could be sure of being eligible to make a claim. Frequently found exclusions include being in full time work and working for at least a period of 6 months prior to taking out your policy. You should live in the UK, Channel Isles or the Isle of Man in order to be eligible to claim. There could be many more exclusions and the only way of finding out is to check in the terms offered by the provider.

Consider adding in protection against incapacity

You might want to give some thought to what would happen if you lost your income as the result of an accident or sickness. You could be unable to work for some considerable time if this happened it could again leave you struggling to find money for your outgoings or repayments. If you pay a little more each month in premiums then you would be eligible to make a claim if you should become incapacitated. When considering this also check the terms offered by your provider to find out if you could claim carer cover. If so you would be eligible to claim on your policy should you have to give up work to take care of a loved one that was incapacitated.

The different types of redundancy insurance

With mortgage protection to rely on you would not have to worry where you would get a substantial sum of money each month to continue meeting the demands of your mortgage repayments. The income from the policy could be enough to stop mortgage arrears from building up which could eventually lead to you losing your home.
Loan payment protection would be there for you to continue meeting the demands of your loan repayments each month. You would not have to worry about falling behind on your repayments and of the lender taking you to court.
Income payment protection provides an income that you could use as you wanted. You would have the money to be able to meet any essential repayments that came into the home during your unemployment up to the term of the policy.

Why take out cover?

When you consider the alternatives to unemployment insurance you might be able to see why you should consider paying out the small premium each month for a policy. A State income often falls short of the income you brought home when you were working. This means you could still struggle to find the money needed for your repayments each month. If applying for an income towards meeting your mortgage then you would have to bear in mind that any income you might get from the State would only go towards meeting the interest part of your mortgage repayments. You would also have to wait for a period of 13 weeks before you saw any money which could mean arrears had already built up.

Looking for the best deal on a policy

If you shop around and compare the cost of unemployment insurance with a standalone provider then this is generally one of the best ways to make savings on your insurance. High street lenders will charge way over the odds for your policy and often little information is given regarding the small print. With the independent provider you can make great savings and you will know if you would be eligible to take out cover in the first place.

Summary of the benefits of a policy

• You would be able to choose how much of your income or repayments you wanted to take unemployment insurance for
• This would be the income that you get back each month in tax free benefits to be used towards your outgoings and repayments
• You know when a claim can be made and how long your benefits would continue which allows you to search for work with peace of mind.

Unemployment insurance can be a lifeline if you should become a victim of redundancy. If you lose your main income then your lifestyle could have to change drastically in order to be able to continue servicing your repayments and outgoings. With one of the three policies behind you there will be money coming into the home each month that you could use towards your outgoings and bills which will ease the worry.

How does an unemployment policy work?

Unemployment insurance works by providing you with a tax free income once you had been involuntarily unemployed for a period of time. The amount of time you will have to wait before making a claim will depend on the provider you choose as will how long you will be able to receive benefits.
The type of unemployment policy you choose to take will be based on what repayments or outgoings you want to protect.

How long will I have to wait before claiming?

How long you will have to wait before making your claim will depend on the provider you choose to take the cover with. Some providers could allow you to make a claim on your cover once you have been unemployed for 30 days and other providers might ask that you wait for up to 90 days before making a claim. Therefore you will need to check in the small print before you take on the cover.

Some providers will also date back your protection to the first day that you became a victim to redundancy so this will need checking before taking any policy.

How much income will I get?

The amount you will receive each month from your unemployment insurance will be the sum of money that you chose to insure of your mortgage, loan or income. Of course there will be a limit as to the amount that you could insure and this will have to be agreed by the provider.

As a rough guide you will be able to cover up to £1,500 or half of the gross monthly income you bring home each month when taking out income payment protection insurance.

How long will the payments continue?

Some providers will payout your income for a maximum of 12 months and then the benefit will cease, however some will provide you with 24 months of benefit from your unemployment protection.
If you are offered a policy that continues paying out over 24 months then you will expect to pay out more in premiums for the policy.

You also need to bear in mind that once the term of the cover had been reached, if you were to have to claim for this long, it will then cease regardless of your circumstances.

Checking for eligibility

You should always check for eligibility before taking out any form of unemployment insurance. Some providers might add in just the most common exclusions while others could add in many.

You do need to be in full time work in order to be eligible to claim and you will also have to have been working for at least 6 months prior to you applying for the policy.

Other exclusions you could find

If you work for yourself and are considering a policy then you will have to check the small print of the cover very carefully. You will generally find that you will only be eligible to claim if you were to have to stop trading on a permanent basis.

You should also check the wording of any policy you are considering if you suffer from a pre-existing medical condition. There could also be many more and it is only by checking them against your lifestyle that you could be sure that you will be eligible to make a claim.

Choices of protection

While you can take out unemployment insurance just to protect against the possibility of redundancy you can also choose the events you need protection for. If you pay out a little more each month then you could also cover incapacity in the same policy. You will then be eligible to make a claim if you were to become a victim to either of these events.
It is also worth noting that you can also take out protection solely for incapacity if this were to suit your needs better.

The types of redundancy cover

You will have the choice of taking out mortgage, loan or income unemployment insurance depending on your needs. If you choose mortgage cover then you will have an income that will go towards you being able to maintain your mortgage repayments. Loan payment protection will allow you an income towards being able to continue meeting your loan demands each month.
If you wanted an income that could be used towards any essential outgoings then you could choose income payment protection insurance.

Why you might want to consider a policy

You might want to consider a policy as the alternatives are applying to the State for an income or relying on savings to get through your unemployment or incapacity.
If you apply to the State for an income towards your mortgage then you will only get an income towards the interest part of the mortgage repayment. You will also need to wait for a period of 13 weeks before you could make your claim. If you rely on savings then you could find they run out before you found work.

How to get the best deal on your policy

Shopping with an independent provider and comparing the best deal is one of the best ways to get the cheapest premiums on the policy. The cost of the policy can vary considerably with providers so comparing is the only way to ensure that you will get the best possible deal.

Comparing the premiums is also a necessity and is the only way that you will know if cover was suitable before actually taking out your policy.

Summary of the benefits

• You can choose how much of your repayments or outgoings to insure against redundancy
• Peace of mind is guaranteed once a policy is in place
• You could just take out unemployment insurance or pay a little more and have protection against incapacity in the same policy.

Gaining insight into the unemployment insurance market could be a tremendous financial move for you. What is your current plan to protect your family financially should you lose your job? If you don’t have one, you could face a stressful and devastating period of unemployment. If your plan is to let the State assist you, you need to reconsider. While the State does assist a small group of unemployed, the amount of support is generally small. You need to be proactive.

Unemployment insurance actually takes the form of loan payment protection insurance, mortgage payment protection insurance, or income payment protection. These three insurance products form a sector known as payment protection insurance, or PPI. This portfolio of products are relatively unfamiliar to many consumers, but it is obviously important. Though each product is unique in its role, payment protection in general provides benefits in the form of replacement for your lost monthly income.

Mortgage cover helps you keep up with your monthly mortgage repayments to help save your home. Loan cover is a broader debt management solution that protects your credit rating by enabling you to make your monthly loan and credit card payments. Income payment cover is good for your ability to meet ongoing financial needs.

More specific details of unemployment insurance

To be better equipped to get a good deal on unemployment insurance, you need to further explore what makes payment cover solutions unique. First, consider eligibility requirements. Have you been employed full time for at least six months? If so, you might be eligible. Retired people and part time employees are excluded from this protection. Also typically excluded are people with pre-existing medical conditions.

If you are eligible, you need to learn more about the terms and conditions that make the products useful. One important factor is the length of the payout period. Some policies pay over the course of 12 months while others payout for a 24 month period of time.

The starting point for benefits is one of the most important considerations when selecting a payment protection solution. Some policies pay benefits as soon as 30 days after a covered event. This is the best-case scenario if you are on a strict monthly budget. Other policies do not pay the first benefit until 60 or 90 days after the covered event. This can be limiting if you cannot afford a gap between your last job pay cheque and the first benefit payout.

The highest benefit allowed under most policies is 1500 Pounds or half the normal monthly gross income, whichever is lower. The benefits are not taxed, which helps you have more money to spend. Some people save on premiums by not taking out the maximum protection. This is only reasonable if you have other funds or sources of income.

Typical events protected by unemployment insurance

There are two common events that you can cover with a payment cover solution. Involuntary redundancy is the normal even that you are insuring with an unemployment policy. However, many providers offer you policies that allow you to add accident and illness benefits to the policy.

You can, of course, opt to just protect against one event or the other. It does not make sense if your employer protects accidents and illnesses to pay for this insurance. Some people that do need illness and injury protection decide to avoid paying for redundancy. This is sometimes because they are confident they can quickly find new work. Others just have savings or good severance pay so they do not feel the need to pay for insurance.

You might also consider looking for policies that include a benefit for carer cover. Some providers add this extra protection to their plans free of charge. This cover pays the same monthly benefits when you have to leave your job to take care of a sick or injured family member.

Where to go for payment protection

So where should you look to buy unemployment insurance? You should look to the providers that give you the best service and support, as well as the most affordable rates. This usually leads most consumers to independent insurance specialists. This has not always been the case, though, as before the last few years, many were unaware of the availability of these insurance solutions on the open market.

Financial institutions dominated the payment cover sector for years because they leveraged their broad array of financial products. Many lenders would package their expensive payment cover products with loans and pressure borrowers into taking on their protection. This issue was among the major factors that led to the filing of a super complaint in 2005 by leading consumer advocate group Citizen’s Advice. Another was the mis-selling of payment protection policies to ineligible consumers by some banks.

The Office of Fair Trading (OFT) received the complaint and asked the Competition Commission to explore the payment protection sector further. The Commission issued several recommendations for changes, including the addition of a seven day waiting period during which lenders cannot sell payment cover to new borrowers. This helps relieve some of the pressure faced by consumers and allows them to explore better deals on the open market.

The Financial Services Authority (FSA) was conducting its own investigation during the filing of the complaint. At its conclusion, the FSA fined several leading high street companies that it found guilty of mis-selling. This helped send notice to banks that this practice would no longer be tolerated.

Unemployment insurance is much more affordable through independent providers. Loan payment protection is around ten times less expensive when it is bought from an independent insurance as opposed to a financial institution. Mortgage payment cover is four times cheaper. Income payment protection is typically about five times less expensive than it would be otherwise. Now that you are aware of these great savings from independent companies, there is no reason that you should not look at products and get protection for your family. Payment cover is your one best solution to securing yourself financial for redundancy, accidents or illness.