5 Tips for Buying Unemployment Insurance

You can’t help feeling that no one’s job at the moment is safe as the UK economy continues to slide from bad to worse. As most people rely on their monthly paychecks to pay the rent, bills and mortgage, it leaves them in a precarious situation.

Unemployment insurance is available to help you. This insurance protects you against financial ruin in the event that you are made redundant. These are our top five tips to help you find the right unemployment insurance policy.

1. Are you able to provide for your family and yourself if you suddenly become unemployed? This is the most important question you should ask yourself before you consider purchasing unemployment insurance. Statistics show that the majority of us don’t have enough money to cover our needs for the future. We would also struggle to survive for long periods of time without work.

The gloomy economic environment means that it is possible to spend many months searching for a job after being laid off. Many businesses are reluctant to hire too many employees in these uncertain times. Many government agencies have also frozen their recruitment. With so few job opportunities, it can be difficult to get back to work. If you don’t have enough savings to cover such an eventuality, you should seriously consider purchasing unemployment insurance.

2. Finding a policy that provides complete coverage while not charging too much each month is the key to finding unemployment insurance. You must evaluate your situation and only cover what you really need. Do not be tempted to take on more coverage than you actually need. The more cover you have, the more premiums you will pay.

3. Online research is a great way of finding out what kinds of unemployment insurance deals are available. Price comparison websites are a great place to start. They will give you an idea of the premiums that you might pay for your level of coverage. The most reliable and extensive listing of insurance companies will be found on the largest comparison websites.

4. The firms that offer the lowest unemployment insurance will be more selective about who they cover. If you’re lucky enough to meet their strict standards, you can expect to pay a lot less for unemployment insurance than you would with more mainstream providers.

You may also find that the most expensive insurance providers won’t offer you coverage if your situation is not favorable. If you are in the civil service, or in an industry that is particularly vulnerable like construction, it can be difficult to find good quality unemployment insurance.

5. Do not wait too long to get unemployment insurance. Most insurance companies have an exclusion period that lasts between 90 and 180 calendar days after the start date of your policy. This prevents you from filing claims on the policy. If your company has made cuts and you are likely to be the next to go, it might be too late for you to open an unemployment insurance policy.