Your complete guide to unemployment insurance

Have you been laid off from your job? Are you worried about your future? Despair no more! You can benefit from unemployment insurance. It can help you meet your financial obligations effectively. You can file for an insurance claim. However, you are entitled to claim it for a limited period of time only. There are pros and cons of unemployment insurance. It is also known as redundancy insurance. If you have lost your job or are unable to work because of accident or sickness, you can opt for this insurance. Minors cannot apply for it, i.e. you need to be at least 18 years of age to enjoy its benefits.

Accident, Sickness & Unemployment insurance (ASU) is also commonly referred to as mortgage payment protection. You will receive a monthly benefit to cover your mortgage and other relevant costs. If you are sick or if you have met with an accident or you have been made redundant, you can avail of this insurance. When redundancy strikes, you can benefit from the unemployment cover. You have an option to select the amount of benefit you would like to receive. However, this does not entitle you to go overboard. There is a limitation on the maximum amount that can be received. Benefits are usually payable for a maximum of one year. A majority of policies have a deferment period. It means that you need to wait for some time in order to avail of the benefits from the ASU insurance policy.

Beware! There are certain instances that are not covered under the ASU insurance policy. These include deliberate self injury, AIDS related conditions, dangerous sports or occupations, criminal activities and more. So, you cannot manipulate insurance agencies under false pretexts. You can benefit from unemployment protection insurance only if you have been genuinely laid off or you are ill or you have met with an accident. You can receive a fixed monthly sum in the event of sickness, unemployment or accident. You can rest assured that your monthly commitments will be met and you will not have trouble dealing with important financial obligations. So you need not worry about your mortgage payments, debt payments and credit card payments! Everything will be taken care of.

It makes sense to opt for a redundancy insurance cover. So long as you are over 18 and a resident of the UK, you are eligible for it. There is another precondition- you need to be in employment or self-employment for at least 16 hours a week and have been for the last 6 months minimum. If you meet these criteria and pay your premiums, you can benefit from the redundancy cover. The amount of coverage largely depends on your salary and the cover you opt for. The biggest advantage is that you can meet your mortgage payments effectively.

About the Author:

Alan Carr is the author of this article on Redunancy Insurance. Find more information about Unemployment Insurance here.