Have you given any thought to taking out unemployment protection? Anyone who is working full time and who had the commitment of loans or mortgages should consider a policy as without a reliable form of security to fall back onto you could end up losing your home or being taken to court for falling behind on loan repayments due to involuntary redundancy. You would also have to struggle to meet your grocery bill each month, your rent and your utility bills if you do not have a policy to fall back onto.
With unemployment protection you have the choice of protecting your loan, mortgage repayments or you income. You can decide how much of your repayment you want to cover which would be the amount of money that you would get back in tax free payments over the term of the policy, tax free. These payments would continue for a period of time but the provider would have to agree to the amount that you chose to protect. Usually you could insure up to half of your gross monthly income or up to £1,500 whichever amount was the least. You could begin to claim this income once you had been unemployed or incapacitated for a period of between 30 to 90 days. Some providers may date back your tax free income to the first day of your unemployment but you do need to check in the terms offered.
Of course you could also lose your income through incapacity if you became ill or suffered from an accident and if you wanted to protect against this possibility you could add on cover for this too for a little more in premiums each month. A claim can then be put in if you should suffer from either of these events.
You might also want to check your policy to find out if your provider included carer cover in with your choice of protection. Some generous providers will allow you to make a claim if you need to give up your full time job to take care of a family member who became a victim to incapacity. This extra form of security for your repayments would mean you would not have to pay out costs for a stranger to come into the home and take care of your loved one.
Unemployment protection always comes with some exclusions even if these are just the most basic ones. However some could include many more and these would need to be checked against your lifestyle so that you would know that you were eligible to make a claim on the policy.
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