Unemployment insurance would provide you with job loss security as it would pay out an income if you became one of the many who had joined the forces of the unemployed. If you lost your income to redundancy you would have to find the money from somewhere to continue meeting demands such as your rent, your mortgage, loan repayments and other essential outgoings. You could take out the most suitable form of protection and then rely on the policy should you have to.
Any form of three types of payment protection insurance (PPI) could be taken out with an independent provider. This would usually be one of the cheapest ways of taking out your insurance. With some providers you might save up to as much as 40% when protecting your mortgage repayments and 80% when covering the repayments of your loan. You would also get competitive premiums for income cover when compared with quotes offered by the lender on the high street. The terms of cover differs so you would have to check with your provider. Some might pay out once you had been unemployed for just 30 days.
Other providers might pay from the 60th and some up to the 90th day of your unemployment. You could receive an income over a period of 12 months with some providers while others might offer a policy that would continue paying out over 24 months. If you should claim up to the term then the policy would cease upon reaching this date regardless of whether you had found work or not.
If you wanted to have the assurance of being eligible to claim on your policy in the event that you became unable to work due to accident or sickness then you could add in this protection for a little more each month in premiums. You then have the assurance of making a claim if you suffer either of the events you had insured. You might also want to check out your unemployment insurance to find out if you could make a claim on the policy for carer cover. If you could then you would be eligible to claim on the insurance in the event that you would have to stop working full time and remain at home to be the carer for a family member. However you would need to have chosen a generous provider to be given this protection.
Your unemployment insurance could be a more reliable form of protection than risking claiming benefits from the State while you searched for work. Often any income you might be entitled to claim from the State would fall short of your regular income. This could mean you would have to struggle to make it spread out among many essential outgoings and you might fall behind on such as your loan repayments. If you claimed an income towards your mortgage then it would only cover so much of your mortgage repayments. With payment protection you would know how much you would have coming into the home and for how long you could rely on the income.
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