Would you be able to manage without unemployment insurance to fall back onto? For instance where would you get the money from to be able to continue to meet your mortgage or loan repayments or your general outgoings? If you had a policy behind you and you were to fall victim to unemployment you would have an income to rely on if needed.

You could take out unemployment insurance to protect your loan or mortgage repayments or you could protect your general outgoings with income cover. You would have to decide how much of these repayments or income you want to protect as this will be the income that you get back providing it has been pre-agreed by the provider. Your tax free income would begin once the deferment period had passed which could be between the 30th and up to the 90th day of your unemployment and could continue for 12 months, if needed or 24. After this period of time it would stop regardless of your circumstances at this time. You should also give thought to the fact that if your provider does not allow a claim to be made until the 90th day you might already be in debts and arrears by 3 months at this time. A policy paying out from just 30 days could ease this problems and worries.

Should you want to protect against the possibility of becoming incapacitated then you could add this into your policy for a little more in premiums each month and have peace of mind of being able to make a claim should you suffer either event. Also check with the provider to find out if you would be able to claim carer cover and receive an income if you had to take time off work to look after a close family member. If the provider is generous they will include this in your policy.

Unemployment insurance could be a better form of plan than applying for an income from the State. If you were to get an income from the State towards being able to maintain your mortgage outgoings then the income would only be paid towards the interest repayment and you also need to wait for 13 weeks before any money would be given to you. Any income towards your general outgoings might not come anywhere near the income you used to bring home regularly so you could still find yourself struggling. At least with one of the forms of payment protection behind you, you would know how much you would have to rely on and for how long the benefit would continue.

Related Posts

• Payment protection insurance is all-round protection for your outgoings
• Redundancy cover – Would you be able to manage without an income?
• Are you protected with income protection insurance cover?
• Payment insurance can maintain your outgoings
• Redundancy cover could supply you with an income for your outgoings