Unemployment protection falls under the payment protection insurance (PPI) umbrella as it provides a financial benefit if you were to lose your job due to unforeseen redundancy. The payment from the policy can be use to pay your mobile phone bill to your mortgage payment.
The benefit of the policy kicks in when you are faced with redundancy and the maximum payment period is 12 or 24 months depending on the provider you choose. If you found another job before this period is up then the payment will cease.
Unemployment protection really protects anyone who rely only on their monthly salary to maintain the monthly expenses. If you have no savings, no access to state funds, no friends or family to bail you out then this policy will protect you.
In addition to the monetary benefits, the policy will provide much needed peace of mind. If you lose your job it is stressful enough trying to secure adequate alternative employment. You don’t want to be worrying about keeping food on the table and your roof over your head. You don’t want to be harassed by creditors or risk messing up your credit profile. The policy payment will alleviate all that.
Details Of The Policy
To apply for a policy you may be asked to prove the at least six months employment history. You will also need to meet the basic entry requirements. Before you sign up for the policy you should read the terms and conditions carefully.
Within the fine print there are important details that will help you decide whether or not that particular policy is for you.
There are exclusions which could prevent you from making a successful claim and you will need to see what these are and how they apply to you. There is also information about the maximum benefits the provider will pay.
The provider will only pay a percentage of your gross salaried income so you need to find out what percentage that will be. This is important as you will need to know if the benefit payment will even cover your most important monthly bills.
The terms of the policy will also indicate the deferment periods available. Most policies carry deferment of 30 – 90 days but others could be as much as 6 months.
If you want to add sickness or accident cover then the provider will inform you if that option is available. If it is be prepared to pay an increased premium.
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