We are all making significant efforts to save money and spend less in these uncertain times. Realizing that unemployment is possible, we are confronting our fears. According to financial experts, it is ideal that we have enough savings to last six months without being unemployed. However, it’s likely that we don’t have enough money in our savings to last more than a few days.
The government offers minimal unemployed income protection
During the Great Depression, the Federal government established unemployment benefits. The government will not give you more than half of your former salary, and you have a maximum amount you can receive each week. It is unlikely that unemployment benefits will provide enough money to pay your bills, let alone to support the lifestyle you enjoy. It is important to know that you will not be eligible for government unemployment benefits if you are unemployed and cannot find work.
Insurance, Insurance and Insurance
You can choose from a variety of insurance policies that provide you with unemployment income protection. You should consider three types of insurance policies: income payment protection, mortgage payment protection, and loan repayment protection. These three types of insurance will help you get through the stress of unemployment.
Unemployment Income Protection to Your Salary
Your salary is what you rely on to pay your bills, purchase food, maintain your home, and fill your car with gas. Income protection insurance provides a lump sum monthly, tax-free, that will help you maintain your quality of living. You decide the amount that you will receive each month by calculating your monthly salary when you take out an insurance policy. This policy provides the most protection against unemployment, as you can choose where to place the money. This policy also has the highest premiums. You have cash flow to help you if you are unemployed.
Income Protection for Your Mortgage
Your mortgage is most likely your largest monthly payment. Your mortgage will be your largest monthly payment. If your home defaults, you may face foreclosure and the fear of becoming unemployed. Unemployment mortgage protection insurance will cover your mortgage loan for a period of time. This policy will protect your home’s future and allow you to get back on track and join the workforce again.
Income Protection for Your Loans
If you aren’t an average American, you may have multiple lines of revolving debt that require a monthly payment. Your monthly debt obligations will be fully paid by loan protection insurance. This policy will cover the essentials, such as student loans and car payments.
There are many options for unemployment income protection so you won’t be without cash for a month. Locate an agent who can help you determine if this type protection is right for you. Start doing your research to find the right unemployment income protection for you today.
Part-time work is required. Self-employed individuals, seasonal or temporary workers are not eligible for mortgage payments insurance. Companies might also consider the length of time one has been employed.
If your job is at risk, you might consider this coverage. To decide if this protection is right to you, consider the cost of your monthly premiums, your likelihood of losing your job, as well as the financial hardship that could result from your inability to pay your home loan. Do your research and take control of your financial future to determine if mortgage payments protection insurance is right.