Unemployment insurance

With record numbers of employers making staff redundant, it’s unsure if it’s even possible to find another job in the current climate. Many people who have been laid off are competing for the same jobs and even graduates are being forced to go for lower paid jobs or jobs that they haven’t graduated in. It’s a competitive job market that is only getting worse. It has been announced today that 15,000 university posts will be lost in the next few years averaging 5,000 posts a year.

Protection from unemployment
If you own property or are the main breadwinner for a family, then it is wise to have some sort of protection in the current climate. If you are made redundant, you may not get as much money as you may think. With a mortgage and children to raise, the money will soon be non-existent. There are two ways to protect yourself should you be out of work and need to pay your mortgage. You can phone up your mortgage provider and negotiate a smaller short term repayable mortgage repayment. If you cannot afford to repay the mortgage, then you may also negotiate a small repayment break and then continue in a few months or so. When taking out a loan or mortgage you are given the choice to buy protection from unemployment or loss of earnings but banks do charge more than an insurance company specialising in this.

Job loss insurance

If you work in a job sector that is more than likely to be making redundancies such as the car industry or financial sector, then it may be worth buying an insurance policy that will cover you if you lose your job.  Unemployment insurance will cover loss of earnings if you lose your job or can’t pay bills and mortgage due to sickness. You can get as much as £1500 a month to cover bills, loans, mortgage and other household expenses tax free.

How much is unemployment insurance?
For the average 24 year old, you could pay as little as £51 for unemployment insurance and if you another pound on top of that, you could be covered for sickness and accident as well. I have found that the younger you are, the cheaper the cover and for a few extra pounds you could be covered for things other than unemployment. On average the most you can get from an insurance company is £1,500 a month; if you will need more for you to get by then you could pay a higher insurance fee.

Overall unemployment insurance is a great way of protecting your home and family from the unstable job market in the current climate. Read the policy first and check what is needed to make a claim. Fr example if you break your arm and are unable to work for a few months, is a doctor’s certificate sufficient or will you have to pay to get a private consultation with one of their own consultants? Read the small print and make sure you understand before entering an insurance policy and you will have peace of mind that your finances are protected should you not be able to pay your bills.