Do you have unemployment protection to fall back onto if you were to lose your job? The benefits to having protection behind you are enormous. One of the main benefits would be the income provided from the policy to use towards any essential repayments that you had to make while searching for work. Without a policy you could have to struggle even just to put food on the table and maintain your rent each month.
If you look for unemployment protection with an indepednent provider you would be assured of getting the cheapest possible premiums. You would also have some control over your cover, such as the events you want to protect against. To take out your policy this way you would choose to insure so much of your income. Providers will usually allow you to protect up to half of your gross monthly income or £1,500 whichever was the least amount. This amount agreed with the provider would be the income that is paid back to you as tax free payments each month for up to the term if needed. Some providers will offer to provide you with an income once you have been unemployed for 30 days and with others it could be up to 90 days before you can claim.
Providers might pay out your income over 12 months or some could offer a policy paying out over 24 months.
You can take out a policy to protect against a loss of income through unemployment and incapacity together if you pay a little more each month and have security if you were to become a victim to either of these events. However you could also choose just to take out unemployment cover alone, as described here or just for incapacity alone. Also check the benefits offered by the provider as some will include carer cover in the policy. If you have carer cover then you would be able to stop at home and take care of a close family member if they were to become incapacitated and need care.
Unemployment cover can be taken out in the forms of income, loan or mortgage payment protection. If for example your main worry is how you would be able to continue meeting your mortgage outgoings each month then you might choose mortgage cover. If your monthly loan repayments are your biggest concern then you could take loan payment protection. Income cover would supply you with money towards any outgoings.
Unemployment protection would make your life a great deal easier while you looked around and secured work. You would not have to worry about being eligible to claim an income from the State or worry whether the State would provide enough money for you to maintain your outgoings. You would also not have to dig into your savings to maintain your outgoings each month.
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