There are many different types of unemployment insurance. For example, if you have monthly mortgage repayments to keep up with then you could benefit from taking out mortgage payment protection insurance (MPPI).



Mortgage cover would give you the income needed to be able to continue servicing your mortgage. This would mean you would not be left struggling to find an income each month. In turn, this would allow you to concentrate on finding work.

While you might think that savings would get you through you would have to consider how much it would cost if you remained out of work for as long as 12 months. Your savings would soon run dry. Relying on the State can be a letdown too, you would have to qualify for help and you have to be receiving income support. Along with this, any savings over a certain amount are taken into account along with if you have a partner living with you in full time work. Even if you were able to claim benefit, you would only be able to get help with the interest part of the mortgage and only for the first ?100,000 of the interest part.

You should also give some thought to income payment protection insurance taken out as unemployment insurance. If you lost your income, you would have to consider how you would be able to maintain your lifestyle. When you stop and work out how much your essential outgoings add up to each month, you will find it is a considerable sum. Again, savings would soon run dry if you were unemployed for any length of time. An income payment protection policy would give you a tax-free sum each month that would replace your lost one. This would enable you to continue providing for your family.

Loan repayments can also be a huge worry. Having to continue meeting loan or credit card repayments can become a huge problem with no income each month. Loan cover taken out as redundancy insurance would give you the ability to maintain the repayments. This means that you would not get behind and earn yourself a bad credit rating or have a court order against you ? both which can affect future lending.

All types of unemployment insurance are cheaper when you get your quotes with a specialist provider. You will also be given the key facts which can tell you what the policy contains and tells you about exclusions which can exist. This information should be read thoroughly. A policy would usually begin to pay out benefit once the policyholder has been unemployed for between 30 and 90 days. It would then give security for between 12 and 24 months depending on the terms and conditions of the provider. They do differ so again reading the small print will allow you to compare policies for not only the cost, but also when the cover begins and ends.