Unemployment cover has never been the easiest product to understand due to the technical wording associated with policies. While the product can give the policy holder an income once they have been involuntarily unemployed between 30 and 90 days after the event which is defined by the provider, it is not suitable for all.
However in March 2008 it is hoped that insurance will be made more transparent with the introduction of comparison tables. The tables are the latest measure from the Financial Services Authority to make protection insurance policies easier to understand. When they began investigating the sector in 2005, one of the biggest problems was the confusion surrounding cover. Sometimes little or no information was given out at the time of buying which led to many policy holders not being able to claim.
There are general exclusions to be found in an unemployment cover policy, as with all insurances, and these are what stop you from claiming. If you only work on a part time basis, suffer a pre-existing medical condition or are self-employed then you would have to check a policy very carefully. These are just the most frequent exclusions to be found and there can be others which are added in by providers. Always make sure you go over the wording of the terms and conditions to make sure that a policy would work for you.
You can take out unemployment cover to safeguard your monthly mortgage or loan repayments or to give you a replacement income in general should you become out of work. However deciding which type of cover you need can be confusing. The comparison tables will help the individual through a series of questions determine which policy would be the most suitable. They will also make the individual aware of the exclusions and how much cover would cost in total.
If you have a mortgage and want to make sure you would have the income to continue servicing your repayments then mortgage protection can be taken as unemployment cover. This gives peace of mind that you are not at risk of losing your home to repossession. To keep up with your loan commitments you could invest in a loan payment protection policy. And if you want to safeguard your income in general in case you should be unable to work, then income protection can be a solution.
Premiums charged for unemployment cover will differ depending on the provider. Taking out a policy alongside the amount you are borrowing from the high street lender is not always the cheapest way to buy cover. This is not the only option you have for taking a policy; you can choose to buy it independently and by doing so you can save money. In some cases taking insurance alongside the amount borrowed can almost double the cost of borrowing.
A standalone provider will not only help you to make savings on unemployment cover but they also offer free advice which you should make good use of. A policy can work but it is down to the individual to make use of the information and read the terms and conditions that an ethical specialist will provide and then make an informed decision regarding suitability before buying.
Need Get Cash In 60 Minute? No Credit Checks, No Hassles. Higher Approval Rate. Get Payday Loan Now!
Rating of loans and bad credit
Get Online Application at online payday loans.