Who should take out unemployment cover?

Every day, 500 people in the United Kingdom become unemployed - of these, 45% of unemployed women and 60% of unemployed men are out of work for over six months.

Providing for your family in times of unemployment is not easy and is often unachievable. On top of the mortgage payments, the family also needs to pay utility bills, buy food etc and this is simply not possible for many families. Income payment protection may be taken out to ensure your family can maintain the quality of life they are used to in times of unemployment.

Mortgage payment protection may be taken out to ensure your mortgage payments are still made in times of unemployment. The family then needs to make provision for other costs of daily living, however once the mortgage repayments are being made, providing for these costs is much more manageable and may often be funded from existing savings or an income payment protection.

In the UK, many people are still under the impression that should they become unemployed, the government will support them. This is simply no longer true, the government expects you to make financial provision for your future and any contribution made by them will not be great enough to allow you to continue your current quality of life.

• A single person receives under £60 a week of state benefits
• Unemployment of a primary provider for the family has often caused a considerable loss of income. This in turn causes mortgage repayments to be neglected and finally the family’s house to be repossessed.
• Nearly 20% of working age households (3.4 million) has someone today who is currently out of work.
• One in three aged between the ages of 25 and 34 have experienced unemployment for at least a period of one month. Today, around 1,000,000 people are registered as unemployed.
• Two adults with two children will only receive between £96 a week and £134 a week.
• Unemployment cover can be taken out to provide the money to keep up mortgage related costs (mortgage repayments + insurance premiums etc) and is usually referred to as Mortgage Payment Protection.
• Unemployment cover may also be taken out to provide a set level of income up to 60% of after tax monthly income or £1000 which ever is the lesser value. This form of unemployment insurance cover is referred to as Short-term income protection.

personal loans
Secured loans

-- Please Note --
This web site is owned and managed by Alliance Internet Ltd..

Alliance Internet Ltd is an Appointed Representative of Financial Connexions Ltd. Financial Connexions Ltd is authorised and regulated by the Financial Services Authority.