Unemployment protection could be enormous security and protection for a wide variety of repayments and outgoings. You could choose to take out your policy to safeguard your mortgage repayments against the possibility of losing your income to redundancy. You could also choose to protect your loan repayments if this suited you better, with loan protection. You might also choose to take out income payment protection so that you would be able to cover a wide range of outgoings.
Whichever unemployment protection policy you choose you also have to choose the amount of your income or repayments you want to protect. This is the sum of money that you would like to get back from your policy each month towards meeting your repayments and the income would be tax free. With this in mind the provider would need to agree to the amount that you choose. You would need to wait for a period of so many days before making your claim and this could be between 30 and 90 days. Some providers could offer to date back your income to the first day that you become unemployed but you do need to check in the small print. Your benefit could then continue for up to 12 months with some providers or it could last for up to 24 months with others. If you were taking out a policy that continued to provide an income for 24 months then you have to pay more in premiums each month for your policy.
You would need to check the terms of any redundancy insurance policy you are considering taking out as there will always be some exclusions that you would have to take into account. These would have to be checked against your circumstances and all providers will give you the information needed to ensure you would be able to do this.
You could take out unemployment insurance in the form of income cover and have an income that could be used towards you meeting any repayments and outgoings. If you have mortgage repayments to consider then you might want to take out protection in the form of mortgage payment protection. You could take out loan payment protection if you have loan repayments to maintain each month.
While you could just take out unemployment protection on its own you could also consider adding in protection against incapacity. This would allow you to claim on your policy if you were to suffer from an accident or an illness. Of course you would also be able to claim if you were made redundant. Your provider might also include carer cover in with your policy. Carer cover would give you an income if you should have to stop working in the event that a family member became incapacitated.
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