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  • Unemployment Insurance Explained

    Being made redundant is the last thing anyone wants to happen, and the worry of finding yourself in this situation can cause extreme stress and begin to affect your daily life. Because of these aforementioned concerns, unemployment insurance may be something you want to consider.

  • What is Unemployment Insurance?

    Unemployment insurance sometimes referred to as redundancy insurance or sometimes ASU insurance (accident, sickness and unemployment) is a type of insurance which will pay a pre determined monthly benefit if you do in fact lose your job due to involuntary unemployment. Redundancy insurance is often taken out to protect mortgage payments or other large monthly bills that you rely on your normal monthly salary to cover.

  • When Should You Consider Unemployment / Redundancy Insurance?

    Feeling secure in your job is a fantastic feeling, however no job is for life, or 100% secure. Unemployment insurance should be considered on a ‘what if’ basis. Ask yourself, if you lost your job would you have enough savings to cover your bills and day to day living in the immediacy? If you wouldn’t, an Unemployment insurance policy may be worth considering.

  • How Much of My Income Will Be Covered?

    The maximum monthly level of benefit that can be applied for is £2,000 or 65% of your normal gross monthly earned income, whichever is the less.

  • When you would not be eligible for an Unemployment Insurance policy

    Whilst we have already discussed why you may want to consider insuring yourself against involuntary unemployment, there are some circumstances where you would not be covered by such a policy. From the start date of a policy there is always a set period of time called an Initial Exclusion Period (which relates specifically to the unemployment cover only) whereby the policyholder cannot make a claim for involuntary unemployment. You should check the full policy wording but some examples are as follows:

    • unemployment which is notified to you or which you become aware of during the initial exclusion period.
    • unemployment due to you becoming a carer within the initial exclusion period.
    • unemployment which you were aware of at the start date.
    • unemployment if, at the start date, you were aware that you would have to give up work to become a carer.
    • any period for which you have received a payment instead of working a notice period.
    • unemployment which is normal or seasonal in your occupation.
    • voluntary unemployment, such as resignation or voluntary redundancy,
    • unemployment due to your misconduct. Misconduct means not following company rules or breaking the law.

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