Who should take out Unemployment Cover?

Every day, 90 families are finding that their homes are being repossessed. The reason for this happening in the majority of cases is that they have run into financial problems, normally associated with unemployment. Almost 20% of working age households (3.4 million) has someone today who is currently unemployed. Every day, 500 people in the UK become unemployed. Of these, 45% of unemployed women and 60% of unemployed men are out of work for over six months. One in three of the people aged between the ages of 25 and 34 have experienced unemployment for at least one period of over one month. Today, nearly 1,000,000 people are registered as unemployed.

If you do become unemployed, you may know that you may have to go without the luxuries in life. Yes, maybe the Ferrari you wanted is not going to be on your shopping list yet, and perhaps you may want to bin the plans for the safari holiday in Kenya. However, have you thought about how you will be able to afford the necessities?

What about your mortgage? What are your payments? What are your savings? How long could you last paying your mortgage should you become unemployed? What happens if you run out of money to pay your mortgage? A mortgage is a secured loan. This means that should you default on your payments, the mortgage provider actually have the right to repossess your home. Do you have any other loans? A car loan or even simply a large credit card balance? These may or may not be unsecured, but in the end, if you can't afford the payments, the courts can still order your possessions to be repossessed.

Many people in the UK are still under the impression that should they become unemployed, the government will support them. This is a fallacy, because you can simply no longer rely on the government to support you. A single person will receive under £60 a week of state benefits and two adults with two children will only receive a typical amount of £96 a week, with the maximum being £134 a week. Could you support your family or even yourself on this?

The chances are probably not, which is why unemployment cover is for everyone. There are no jobs for life anymore and so anyone with a job, be it employed by someone else or self-employed, should think seriously about taking out unemployment cover. Just like any insurance, assuming you don't know you are about to become unemployed, you pay premiums, and then after an exclusion period when you are not covered, you will be covered, and payments would start a month after you have lost your income and last for a certain agreed period.

 

 

 

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Unemployment

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> 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?