Private Insurance to Top Up Inadequate UK Unemployment Benefits

Our cash-strapped Government is urging people to take control of their lives and not rely on the state to provide. Those who are capable are considering their options. Unemployment and how to make ends meet financially are the biggest concerns for both public and private sector workers. Because of the low state benefits and limited savings, it is important to have private insurance to supplement these. This need has been met by the UK’s insurance industry, which offers a variety of products that can be purchased online.

Unemployment Protection Insurance helps customers repay their debts. BBC reported that 600 debts are threatening people’s homes on 22 November 2010. Anyone who has the ability to get Unemployment Insurance policies when they are available can avoid this terrifying situation.

There is a problem. People often think of buying insurance to pay off their debts or cover other expenses. But it’s too late. Because they cannot honestly state they didn’t expect to be unable work when they take out an insurance policy, The Insurance Company could refuse to pay if they didn’t. If a company or organization has not made announcements about the possibility of laying off employees, then it is a good idea for them to do so now.

Better Unemployment Protection Insurance policies will allow customers to choose the best type of coverage for them. It is important to note that a monthly benefit of 1000 that does not have a repayment schedule is typically cheaper than covering your mortgage payments and paying a small portion of household expenses. The latter is short-term Income Protection Insurance. It’s good but not always the most affordable.

How much coverage?

Unemployment Insurance is something that everyone should think about. It is important to assess their financial situation, as well as any existing insurance or savings. Most people who take out this coverage know that they can cope with being out of work for one or two months*. They would be in serious trouble if they were out of work for six to eight months.

You can save money to cover your daily expenses like food and fuel, as long as you don’t have large monthly bills such as rent, mortgage payments, or loans. This is the most common money-saving approach. They buy Unemployment Protection Insurance policies that will pay their essential bills until they return to work.

Who is eligible to apply?

Anyone over the age of 18 or under 65 can get these policies. This coverage can be purchased by those who work part-time (at least 16 hours per week), as well as individuals on fixed-term contracts or the self-employed.

What’s covered?

The policyholder receives the monthly benefit of the insurance, which covers the amount they choose for their benefit each month. This can be up to one year or until they return to work. Although a policy can be purchased that covers up to two years, the average amount of unemployment is around 8 months*. Most people opt for a 12 month policy, which is cheaper. This type of insurance can be claimed more than once per year.

What isn’t paid?

Unemployment Insurance does not cover medical conditions that the insured knew about before they started.

Their policy. Insurers also do not cover pregnancy and self-harm. These policies do not cover unemployment if the policyholder quits or accepts voluntary retirement. The policy will not pay out if the employee loses their job for violating their employment contract. stealing or misconduct).

Most insurers require a deferment period before unemployment benefits can be paid. This means that the policy must be in effect for at least 90 days (providers may vary) before the policyholder is eligible to claim unemployment benefits.


The premiums are typically collected by direct debit monthly. If the policyholder decides that they no longer need the coverage, they can cancel the direct debit. This will immediately end the policy and not subject to penalty.


This coverage is worth considering in a world with uncertain future employment prospects. You can find specialist providers online for the best prices.

It is best to avoid tele-sales agents trying to sell you a product. Only get quotes from companies that will provide an estimate price before you submit your telephone number. Some companies offer comparison websites to get the customer to fill out their details. These can then be sold to companies with commission-driven sales agents who won’t take no for an explanation!


Dennis Haggerty, specialist i.protect insurance said that you should expect to pay between 20 and 40 per month for a policy which pays 1000 per month if your job is interrupted. Contrary to car insurance, unemployment insurance costs more as you age. It is becoming harder for over-50’s to find work, and because health problems become more severe with age, which has led to higher prices.

Unemployment insurance may not be right for everyone. It is an affordable option for young families or individuals who could quickly find themselves in serious financial trouble if they are out of work for any period. It is important to not delay applying for insurance until your employer raises redundancy concerns. Employees will not be able to protect themselves against any job loss if it is too late.

*Industry data sourced from Financial Services Forum Oct 2010.

Dennis Haggerty FCII M IDM Marketing Manager specialises in the supply of low cost on line Unemployment Insurance, Lifestyle Protection, Income Protection and Mortgage Payment Protection Insurance.

The success of i.protectinsurance is due to its focus on providing a product line that is exceptionally value for money, because it is only available online. This eliminates all the costs that come with selling insurance, such as commission, middlemen, and telesales.