Unemployment insurance is available in a wide range of options with various different costs and benefits. Some applicants will choose just to cover their mortgage repayments and important household bills, while others will opt for a protection option which covers all bills and loan repayments.. However, if people already have a decent amount of money in savings, why would they even bother with insurance at all? Surely could survive on these savings in the event of losing their job?
Unfortunately it is not that simple. Statistics published last year show that the majority of people in the UK do not have the necessary savings to get by for more than two or three months if they were to be made redundant.
Unemployment cover is a low cost alternative to having the substantial savings needed to meet the bills while the bread winner is out of work. Anyone who chooses to purchase the top level of insurance is effectively placing up to tens of thousands of pounds at their disposal should they not be able to work for up to a year. Additionally, these benefits will be made available if the policy holder is rendered unable to work through injury or sickness, as well as in the event of redundancy.
Thus, unemployment insurance can be seen like having savings in the bank, which can be drawn out if the policy holder finds themselves without work. The chief advantage of this is that the individual does not have to save up all the money themselves.
Customers are on average likely to pay a premium of around
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