Income insurance protection unemployment cover would provide you with a replacement income if you were to become a victim of unemployment caused by redundancy. If you were to lose your income to redundancy then it could take you many months to find work and during this time you would still have to make your essential payments each month or when they dropped through the letterbox. The replacement income would be spread out by you to cover whatever bills did need servicing.
You could take out your income insurance protection unemployment policy with an independent provider and compare the quotes for monthly premiums. The premiums would be dependent on the amount of your income you choose to protect, for one. This amount would have to be agreed with your provider as it is the amount you would get back each month as a tax free payment. You could make a claim once a certain period of unemployment had passed which could be between the 30th and the 90th days depending on the provider, so checking is essential. You would also need to check how long you would be able to rely on payments as this can be for either 12 or 24 months. Once the terms has reached its end, should you need to claim for this long, the cover would cease.
You should weight up that 90 days can be a long time to wait before making a claim as you would have money to find for 3 months if you did not want to fall behind on the rent for instance. You could have more peace of mind if you choose cover that would begin providing your income after just the 30th day. You would also need to weigh up that 24 months protection would cost more than 12 months and 12 months can be more time than you need to find work or recover and get back to work.
A policy can be a better way of protecting against redundancy than relying on being eligible to make a claim for an income from the State. The State would expect you to use redundancy money over a certain amount first and there would be other criteria that would have to be met. Even if the State paid an income then this income often fails to match your own income. This again could leave you without the money you need for your essential repayments. Paying an affordable monthly premium for income cover would also be better than relying on redundancy money. You could make a huge hole in any money you were given when unemployed and this could be put to one side for your future if you had cover to fall back onto.
While you can take out an income insurance protection unemployment policy you could also consider paying a little more each month and have cover against incapacity also. You would then be eligible to make a claim if you were to suffer from either unemployment or incapacity. Incapacity can also be protected on its own if this were to suit your needs better.
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