Best Use Of An Unemployment Protection Insurance In Times Of Emergency?

By Author: Vijay Koragappa Shetty
Total Articles: 2541
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Do you live in the fear of losing your job? You must be uncertain about the economy, recession and how it would suddenly affect your work? Your dependents may suffer if you are the sole bread winner of the family? There is a solution to all these, known as unemployment protection payment.

No more be worried about your loan payments, and have no fear of losing your house which is used as a collateral. You don't have to file for bankruptcy as well. Don't face any kind of public embarrassment. You are safe in the protective hands of an Insurance company which will provide you enough financial succour when you need it the most. When you are opting for one, you must not settle down with a policy which offers you the lowest premium. You can take in to consideration its terms and conditions. While considering its price also look at various factors such as till when are you covered, what is the amount you would be paid and when would they start paying you once you make a claim.

On what grounds can you make a claim, see the following:

-Loss of job

-Accident

-Illness

Be it a redundancy or loss ...
... of job, accident, sickness or any other reason that has made you stay away from work will be covered. When you are applying, you can opt for a policy till your retirement age. You may have mortgage payments to make and will jeopardize your collateral(home) if you don't pay on time. If you are out of work for a long time, you may stand to lose your home. This protective cover will help you as a supplemental income and pay you 50 to 70% of your salary so that you can meet your various pending bills, living expenses and repay your monthly installments on loans. Some companies will start paying you from 30 days of loss of job, while few others will start only after 90 days of redundancy. Therefore check with your agents and make sure they start paying you early.

The advantage of income protection speaks for itself - you have the peace of mind that if you were to fall ill, suffer an accident or be made unemployed, your debt repayments would be covered. Some States do offer some financial assistance if some thing worst was to strike in. State assistance is limited and this can leave you open to huge problems if the unexpected happens.

Payment Protection insurance will offer protection against:

Household expenses
Your mortgage loan's equated monthly installment is paid
Your Monthly income (this is usually 50% - 70%)
Other debt repayments, or credit card payment.

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