What You Need To Know About Unemployment Insurance

Allinformation.com- Employment in today's economic climate is precarious. If you are like most people, you are counting on each paycheck to cover bills and household expenses. This tends to make one nervous, as one day you may find yourself unable to meet your responsibilities. If you are reading this article you are already considering unemployment insurance. This article will give you a foundation by revealing what you need to know about unemployment insurance.



Private Unemployment Insurance vs. Government Unemployment

Don't confuse unemployment insurance with government unemployment. Unemployment insurance is coverage purchased through a private insurance company that will pay out if you lose your job. Public unemployment will only pay if you meet specific requirements and you lose your job through no fault of your own. If you purchase a private insurance policy, you can get the level of coverage you want and do not have to worry about as many constraints.


Do You Need Unemployment Insurance?


The most common reason to purchase an insurance policy to guard against unemployment is to protect your major assets and avoid severe financial repercussions if you lose your job. Insurance for unemployment is an inexpensive policy that can offer huge benefits if you find yourself out of work. Whether you are in a temporary situation or a prolonged situation of looking for work the bills can mount up quickly. If you lost your job, how long could you continue to make payments on your home, your vehicles and still pay your other living expenses? This is where those inexpensive monthly premiums can come back to offer you much needed dividends.

Benefits of Unemployment Insurance

The concern is whether or not it is in your best interest to spend your hard-earned money on insurance in the case you become unemployed. The way to do this is to weigh the benefits in conjunction with disadvantages. Here are the most prominent benefits.

Cheap premiums: Of all types of insurance, unemployment coverage is at the top of cheap coverage.

Benefits are tax-free: The pay outs you receive during the claim period are not taxable, offering a brief respite to help with paying household expenses.

Redundant policy: As long as you continue to make premium payments, the policy can pay out benefits on multiple occasions. The policy will pay out each time you are laid off.

Variation of plans offered: Payouts can be deferred for 30, 60 or 90 days depending upon your need.

The final benefit is the peace of mind it can offer you by knowing that if you or your spouse do lose your job, you have a contingency plan. In a time of economic turmoil, peace of mind may be the most important benefit you can receive from this type of coverage.

Disadvantages of Unemployment Insurance

The disadvantages of unemployment insurance include the following.

Eligibility: Depending upon the policy, you may not be eligible for benefits if you are a part-time worker or over the retirement age.

Restrictions: Most policies will require that you only receive benefits if you are involuntarily employed. Payments may be withheld if you are fired for cause or you quit your job.

Specific coverage getting harder to find: Many companies are no longer offering unemployment insurance only. You may have to purchase this type of coverage in conjunction with other policies.

Waiting periods: Many policies have a 6 month waiting period once you purchase a policy before you can receive benefits.

The good news about most of these disadvantages is that they are not definite for every policy out there. If you shop around for unemployment insurance, you can find a policy that works for your specific set of circumstances.

If you have a home, you may have already been offered some sort of mortgage protection or unemployment insurance from your lender or homeowners insurance company. You will want to compare these offerings with others on the market. Keep in mind that in many instances in which unemployment insurance is offered through these channels, they may only offer payment for your mortgage and not for other expenses. The key is to evaluate all options. To learn more about homeowners coverage and get insurance quotes specific to your needs, take a look at

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