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How to insure yourself against unemployment
Originally posted by 5corpio
With unemployment at the highest level since 1994, many people are worried. So what steps can employees take if they are worried about losing their job?
One option is insurance. There are a number of different products available, all of which will pay out a monthly sum if the policyholder is made redundant.
But there are concerns that some smaller insurers are already refusing to offer cover to those in the public sector, and as widespread job losses look increasingly likely, premiums could rise sharply. Those looking for unemployment insurance basically have the choice between two different products.
The first is often called Accident, Sickness and Unemployment cover (or ASU). This is an annual insurance, in other words it is renewed every year, much like your car or home insurance. So you can cancel it, if and when the economic situation improves.
If you are unable to work – either as a result of ill health or redundancy – these policies will pay out a fixed sum for a year.
A form of this insurance, known as Payment Protection Insurance (PPI), is often sold alongside loans, credit cards or mortgages. Basically it is the same product, the only difference is that the payout simply covers the interest payments due on the linked loan or credit card, again usually just for a year – and the pay out is usually made directly to the....More on story: How to insure yourself against unemployment - Telegraph
One option is insurance. There are a number of different products available, all of which will pay out a monthly sum if the policyholder is made redundant.
But there are concerns that some smaller insurers are already refusing to offer cover to those in the public sector, and as widespread job losses look increasingly likely, premiums could rise sharply. Those looking for unemployment insurance basically have the choice between two different products.
The first is often called Accident, Sickness and Unemployment cover (or ASU). This is an annual insurance, in other words it is renewed every year, much like your car or home insurance. So you can cancel it, if and when the economic situation improves.
If you are unable to work – either as a result of ill health or redundancy – these policies will pay out a fixed sum for a year.
A form of this insurance, known as Payment Protection Insurance (PPI), is often sold alongside loans, credit cards or mortgages. Basically it is the same product, the only difference is that the payout simply covers the interest payments due on the linked loan or credit card, again usually just for a year – and the pay out is usually made directly to the....More on story: How to insure yourself against unemployment - Telegraph