Unemployment Protection Still matters – Check It Out

Are you looking and worrying about losing your job? If you have enough time to prepare, you can invest in something that can make it easier than ever before to really get a handle on your finances and move on to a better job later on. This would be unemployment protection. Now, some circles of the media feel that this is insurance cover that’s a real waste, but we don’t think so at all. The truth is that if you really want this type of protection you can certainly find it. It’s just a matter of deciding what you’re going to do and then following through with it.

Keep in mind that unemployment protection kicks in when you’ve been made redundant. If you’ve been fired, it’s on you to find a job on your own. But with so many companies looking at downsizing, it might be in your best interest to get this coverage anyway.

Unemployment Protection

You want to start by looking at the waiting period on the policy. Obviously, this is an insurance product. You’re not just going to be allowed to make a claim early on. You’re going to have to actually wait a little bit. Usually 90 days. You also want to look at the maximum amount of your salary that they’ll actually cover. This can be as high as 85 percent, but the higher the percentage — the more money that you’re going to have to pay in terms of premiums.

The deferred period is a little different — it’s the amount before the monthly benefit gets paid. If you have savings, then you can select a longer deferred window so that your premiums come down. But if you need it fast — like four weeks from the date you lost your job — you’ll be able to get that. It’ll just cost you a lot more money.

You will also struggle to find insurers that are willing to cover 80% of your salary — usually 50-60 percent is much more common. You also want to look and see how long they’ll actually cover you. The longest policies that we’ve seen go up to a year. You might not think that’s a long time, but it’s better than the alternative.

Unemployment can strike at any minute. The job market has become so competitive that it’s very difficult to find a job. Companies are getting pickier and pickier about who they really want on their teams, which means that you’re going to have to work even harder to get things done. Now is the perfect time to make sure that everything is lining up the right way. Good luck!