Unemployment insurance is a form of payment protection that would pay an income to you if you should become a victim of redundancy. If this happened and you lost your income a struggle could cause anxiety to find the money for such as your mortgage repayments, loan repayments, rent and other essential outgoings. A policy can be taken out to protect these repayments and you would choose one based on the repayments or outgoings that you considered to be the most essential.
You choose how much you wanted to get back from your unemployment insurance and this amount is pre-agreed by your chosen provider. This income is paid back tax free if you were to become a victim to redundancy once you had been so for a period of between 30 and 90 days. Your benefits might then continue for up to 12 months or with some providers it could be 24 months. You should therefore check with the provider before taking out the cover. You might not want to wait for 90 days to make a claim on the policy as by this time you could be in mortgage arrears of some 3 months and the same could apply to your loan repayments. To ease stress you could therefore ensure that you can claim on the policy sooner rather than later. A policy paying over 24 months would also cost more in premiums so this would have to be considered.
While you might just want the security of protection for unemployment behind you also consider the fact that more a little more in premiums you could have a policy that would also pay out in the event that you became a victim to incapacity. When considering your policy you should give a thought to if the provider included carer cover in with your protection. A generous provider will include this and if so you would be able to claim on your insurance if you should have to take time away from work to take care of a loved one who is incapacitated.
Unemployment insurance can be better than risking claiming an income from the State to maintain your outgoings and repayments. Any income towards your mortgage repayments would only be supplied towards keeping so much of the interest repaid. You could also find that it does not match your own income which again could leave you with a struggle. Of course you would have to prove that you are eligible to claim from the State. Payment protection will have some exclusions and you would need to check these against your circumstances. Once you have you would have a reliable safety net on which to fall should you need it and you would know how much that income would be, when you could claim and for how long you would be able to rely on that income.
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