Looking at the economy, if you still have a job you need to count yourself lucky. Many people are now facing what could be one of the scariest times. With companies cutting jobs across the market it may be more difficult to get back on your feet. As scary as this sounds if you have unemployment cover two things will happen. The policy will provide financial help as well as peace of mind during the difficult transition.
Payments under the policy will be made every month and this figure is tax free. You can use the funds to pay any or all of your bills and maintain your lifestyle while you look for another job. The payments will give you the time to recover from the shock of losing your job and allow you to take time evaluating your job options. This way you will choose the best job that fits in with your career plan.
You will be able to claim on the policy after the provider deferment period is up. The waiting time is usually 30 – 90 days after the covered event. Speaking of events, if you wanted, you could ask your provider to add on insurance to cover sickness and accident. If you take this route, you will have to pay an additional fee.
The amount paid out will depend on the maximum limit set by the provider and the amount of your income. Across the market providers can pay between 40 and 60% of your gross income or up to £1,500 which ever is lesser. While the unemployment cover pays well just don’t expect it to cover your entire salaried income.
To be eligible for cover you will need to meet basic age, employment and residency criteria. More important though is the exclusions attached to these policies and how it could affect you. It is important to read the fine print and measure the rules of the policy against your circumstances. Once you are happy that the policy will cover your circumstances you can relax and enjoy the peace of mind.
With unemployment rates at an 11 year high, it is a wise time to consider unemployment cover, but don’t think too long. If you have a fear that you might be made redundant the time to take out a policy is now.
One final note to remember, with all the talk about credit crunch, there is an easy way to save on your premiums. If you shop at independent companies, you will be able to secure premiums that are much lower that those of high street companies.
Unemployment cover is vital if you have no other source of income. If faced with redundancy you will be glad you covered your income and future payments.
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