Unemployment insurance can be taken out for various outgoings and repayments which means there is a policy suitable for the majority of individuals. You would of course have to check suitability as there will be exclusions as there is any form of insurance and once you have done this you would then have something to rely on if you become redundant. A policy can make a huge difference to how you would manage your outgoings whilst looking for work and in the case of mortgage and loan protection it could mean the difference between you losing your home or keeping it.

You could choose between income, loan and mortgage insurance as your form of unemployment insurance and after you have chosen the most suitable type you could then choose how much of the repayments or income you need to take out a policy for. All providers will state up to a maximum amount, in the case of income insurance this could be half of your gross monthly income or up to £1,500 whichever was less. Your agreed sum is the amount you get back as monthly tax free instalments once you have been redundant for between 30/90 days. Payment of benefit could then continue for 12/24 months depending on the provider you chose to take out your form of insurance with.

Mortgage insurance as the name would suggest would provide an income that would go towards the policy holder being able to maintain their mortgage repayments each month while looking for work. Being able to keep up with mortgage repayments is a necessity otherwise you would have the fear of home repossession hanging over you. Lenders will generally give you some time to catch up on your arrears but they could still cause a great deal of stress. Loan protection would provide you with an income for your secured or unsecured loan repayments. Should you fall behind on secured repayments you would again have the threat of repossession. Debts that occur and which you cannot repay on unsecured loans could mean your lender would take you to court and bailiffs might be ordered into your home to take your belongings. Income cover is a more versatile form of protection as you could use the income provided from the policy in any way that you needed to meet any essential outgoings.

Unemployment insurance is great for protecting against redundancy, however if you would like to add in protection against accident and sickness then you could by paying a little more in premiums each month. You could then claim should you be unfortunate enough to suffer from either of these events. Also check to find out if your provider gave you carer cover in your policy as a generous provider will. This would mean a claim could be put in on your policy if you should have to take care of a loved one and could not work due to doing so. However not all providers will give you this luxury and the only way of knowing is by checking the small print of your policy before taking it out.

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