John F. Kennedy once said, “The time to fix the roof is when it is shining.” He was referring to the fact that the sun won’t shine forever and that it is important to prepare for stormier times.
This quote is directly related to unemployment insurance. You should make arrangements to provide for your family if you lose your job.
You might be thinking, “I’ll just find another job!” Yes, that is true. Once you are unemployed, your main focus should be on finding work. It is sometimes difficult to find work right away, especially in the midst a global recession. You will most likely find a job sooner or later if you have the right connections.
You can reduce the financial strain that unemployment puts on you if you have built up substantial savings over the years. The percentage of people who have access to such large savings for the occasion of a redundancy is small. Recent statistics show that less than half of households have enough savings to cover three months of expenses.
State benefits are the only source of income for those who don’t have a lot of savings. Insurers estimate that the average length of time between jobs is eight months. This is a long time to live and cover expenses with the state’s standard income benefits. For those 16-24 years old, the current standard Job Seekers allowance rate is PS51.85 and PS61.45 respectively for those 25-plus. These meager benefits won’t cover your expenses if you have a family or a mortgage.
Many people don’t realize how fragile their financial situation is. You may be forced to take on serious debt if the worst happens and you are placed in long-term unemployment. While this will help in the short-term, it will leave you with crippling internet bills that could run into the thousands.
This is an easy and painless way to avoid this catastrophe scenario.
Unemployment insurance (also known as income protection or redundancy insurance) is a type of policy that requires you to pay a fixed monthly payment. If you become disabled, you can apply for a claim on your policy. You will be able to customize your policy to meet your needs.
Unemployment insurance costs as low as PS5-10 per week. This is roughly the same cost as a gym membership. On average, claimants receive about PS1000 per month. Your policy should cover your mortgage, bills, and other household expenses. Free assistance is available to claimants in order to help them find work again quickly. This includes advice on CVs and job hunting, as well as interviews.
Unemployment insurance can be vital to your family’s financial security, even though it is unlikely you will ever need it. Unemployment insurance is your only option to protect yourself from the financial shock of losing your job.