Unemployment income protection insurance could make your life a lot easier if you found yourself a victim of redundancy. You could take out a policy by insuring a portion of your monthly income, pre-agreed with the provider, against the possibility of redundancy and receive this sum as a payment each month which would come tax-free if you were made involuntarily unemployed.
The money that you received back would then be used towards any bills that came into the home each month. For example you could use it to pay your supermarket food bill and to keep the home warm by paying fuel bills. Protection could make life easier as the alternative could be struggling to find the money needed or having to juggle around bills or make drastic lifestyle changes in order to maintain your essential outgoings.
The cost of unemployment income protection insurance would vary on the provider. Should you chose to take out the cover with independent payment protection provider British Insurance you would get a cheap quote and be sold protection by qualified trained staff. You would be buying cover that comes with few exclusions when compared with other providers. These would have to be checked against your lifestyle to ensure suitability. However British Insurance supplies the information needed to check on their website.
Ethical British Insurance also offers protection with no excess because they back date your benefit to the first day of you becoming unemployed. You would receive benefit from the 30th day of redundancy and then receive a payment every month for a maximum of 12 months. However after this time the policy would simply expire. You could find by shopping around that you could get cover that would continue paying out for a maximum of 24 months; however you need read the terms offered by the provider to determine this. Also use the terms and conditions to check when your cover could be claimed upon as some specialists could ask you wait until day 90.
Unemployment income protection insurance is a better form of safety net to rely on than savings or being able to claim benefit from the State. You might have to rely on savings for many months as jobs can be hard to find and savings could run dry well before this time. Redundancy money could be used but again relying on this for many months would soon make a big hole in the money. You would have to be eligible to claim State benefits and the money you might be entitled to receive each month could be a let down as often it falls far short of the income you are used to fetching home. At least with unemployment income insurance behind you, you would have the income you insured against for the term of the policy to rely on.
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