Income Protection Insurance

Unemployment Insurance

Here are some facts to make you think.

90 families are finding their homes being repossessed every day due to financial problems caused by unemployment. Every day, some 500 people in Britain become unemployed, and 60% of men and 45% of women do not find work again once unemployed for more than six months. One third of everyone between the ages of 25 and 34 will experience unemployment for at least a month, so it's not surprising that nearly one in five of working age households contain someone currently unemployed.

Even if you are performing well at work, economic conditions that you would not have thought about before could mean your company needs to cut back, and your role may be made redundant. Think about what would happen to you in this case. If you had no income for a few months, would you be able to afford your mortgage? Would you be able to afford to pay back your loans? Would you be able to pay off your credit cards? If not, you could lose your home.

Many people feel that they will be OK if they are unemployed for a while because their savings will see them through helped by government benefits. Well, firstly the government will not help you until you hardly have any savings, and even if they do, what you get is derisory.

In 1994, the then Chancellor of the Exchequer used his budget to announce that he wanted to stop people depending on the state for their mortgage payments should they become unemployed. From April 1995 people who are unemployed with a mortgage get no financial assistance for the first 2 months and only 50% of their interest paid for the next four months. This was added to in October 1995 when new borrowers would not receive any benefits from the state for the first nine months of their unemployment.

The actual amount of benefits that you get should you be single is around £60 a week. Two adults with children get a typical amount of £96 a week, and the maximum possible is £134 a week. Can a family be supported on this? Can all the bills be paid and there still be money to eat? Still think you don't need unemployment protection insurance?

This site looks at who needs unemployment cover and what it actually covers. We also look at income protection, which is a form of health insurance if you can't work due to an accident or sickness. We also talk about mortgage payment protection and general payment protection plans in addition to defining how mortgage protection is different.

Finally, you get the opportunity to get a quote for unemployment insurance or any of the other products that you may need.

 

 

 

© AskFinancially.com 2008

Unemployment

Ask About

> Unemployment Insurance Overview..
> Who should take out unemployment cover?
> What does an unemployment protection insurance policy cover?
> What does a mortgage protection insurance policy cover?
> What does an income protection insurance policy cover?
> What does a payment protection insurance policy cover?
> What is the difference between redundancy protection insurance cover and unemployment protection insurance cover?
> What is the difference between a mortgage protection plan and a mortgage protection policy?
> What is the difference between an income protection plan and a income protection policy?
> Is it possible to insure protection for my mortgage repayments?