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Home / - Unemployment Insurance
Unemployment insurance, as the name suggests is an insurance that pays the claimant if they get made redundant.
This type of insurance is commonly known as “General Insurance”, (as opposed to long term life or health insurance).
This means that this type of insurance is generally renewable and/or reviewable, often on a monthly basis or annual basis, and can therefore be withdrawn by the insurer if economic conditions turn against them.
In practice the policyholder is usually not aware that a review has taken place as there is no change to the terms of the plan, but it is the ability to be able to increase the cost, reduce the benefits, or in some cases withdraw the cover altogether that makes Unemployment cover the least robust of all the covers available here.
Reviews are most likely during periods of rising unemployment levels generally and during an economic downturn. Reviews that affect just one policyholder are very unlikely.
Unemployment cover has and does provide many mortgage holders with valuable protection against involuntary unemployment.
It is important to read the terms and conditions to ensure that you are not excluded from cover, in particular,
- if you change jobs you need to tell the insurer as they may not be able to continue to offer you cover;
- if you knew you were going to be made redundant, or you could reasonably be expected to have known, then you will not be able to claim;
- you will not be able to claim if you are dismissed due to misconduct, including being dismissed for taking part in industrial action, your failure to meet the standards or targets laid down by your employer or any other circumstances that result in your employer taking disciplinary action against you;
- you normally have to have been continuously employed or self-employed for at least six consecutive months at the date of becoming unemployed.
There are many terms and conditions with this type of insurance. You need to be sure it suits your circumstances.
NEWS
New rules to cut life insurance refusals
11 January 2008 13:54:37
Fewer people will have their life insurance claims refused as a result of new rules implemented by the insurance industry's trade body.
The Association of British Insurers (ABI) explained that the move marks a commitment to paying out on protection policies, even where people have not disclosed medical information - unless it was withheld deliberately.
Customers' failure to provide relevant medical information leads to thousands of critical illness, income protection and life insurance claims being rejected every year.
As a result of the new rules, according to the ABI, insurers will pay out a "fair sum, reflecting risk and premiums paid" in instances where information has inadvertently been withheld.
Stephen Haddrill, the ABI's director general, remarked: "Customers want to know that their insurance claim will always be assessed fairly and paid without fuss.
"The industry wants customers to be able to take out insurance with confidence."
Legal and General, a leading life insurance provider, responded to the news by reminding customers that those who are known to have withheld relevant information will still have their claims declined.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
Insurance for sports professionals a 'grey area'
08 January 2008 11:13:19
Insurance and income protection for high-risk individuals such as professional football players present a "grey area" for bosses, it has been claimed.
According to financial firm Aon, although national associations are not obliged to purchase cover, some choose to do so.
James Hands, the company's executive director, commented in the wake of high-profile incidents involving players being injured while playing for their countries.
"Every club has a different way of looking at these things - some national associations take out insurance and some don't," he observed.
"They can insure against whatever they want to insure against – whether that be just a player's salary or whether that be a player having an injury that will end his career," he continued.
During a 2006 World Cup match against Sweden, England player Michael Owen ruptured a knee ligament.
The Guardian newspaper reported that the maximum amount his club, Newcastle, could receive in compensation was £55,000 a week from the FA's insurance policy, although this did not cover his full weekly wage.
When he was injured again playing for England last year, the maximum potential figure had gone up to £100,000 per week.
Sports players have the option of taking out their own insurance against injury and to secure themselves against loss of future earnings.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
Health insurance: 'Vital' ways to cut costs
18 December 2007 10:28:10
The launch of PruProtect by Prudential UK and South African insurer Discovery prompted many people to ask if the latest type of life insurance, income protection and critical illness cover is more of a "gimmick" than anything else.
PruProtect, like PruHealth before it, aims to offer cheaper premiums by rewarding customers for their healthy lifestyles.
So-called "vitality points" - awarded if an individual exercises regularly, downloads healthy meal plans from the insurer's website or quits smoking - can be offset against the cost of a life insurance policy or critical illness cover.
Furthermore, those who take out the cover are offered discount gym membership, free fitness assessments, subsidised heath screenings and discounts on stop-smoking courses.
"PruProtect encourages individuals to take charge of their health and well-being and rewards them for doing so," explained Shaun Matisonn, PruProtect's chief executive, upon the launch of the product.
"Through Vitality, PruProtect supports people when they are well, but is also better able to look after them financially when they are not," he continued.
A major selling point of such premiums is that, with appropriate effort, policyholders could see a 2.25 per cent decrease in prices over the course of a year.
PruProtect's critical illness cover works on a severity basis, meaning claims are proportionate to the severity of the illness - any payout would reflect the customer's needs at a given time.
"Buying a running machine on eBay may not just be the first step towards a fitter lifestyle, it could also cut your private health insurance premiums," remarked the Telegraph's John Greenwood during a discussion of PruHealth.
"PruHealth's latest incentive is a scheme that reduces premiums for anyone who buys certain qualifying sports and health goods on eBay - spend between £5 and £500 on health and fitness goods, from trainers to treadmills, and your premiums will go down," he explained.
Healthcare specialists have pointed out that a life insurance or critical illness product which rewards individuals for healthy behaviour is worthwhile for the "right sort" of customer.
"People need to know what they are capable of when they are taking out a PruHealth policy," Samantha Knight of Chase Templeton told the Telegraph.
"Some people are too busy to go to the gym or know they won't really be able to change their lifestyle," added the spokesperson for the private medical insurance specialists.
She recommended a PruHealth-style plan for people who believe they can maintain a healthy lifestyle, while those who know they will be unable to do so should consult an adviser to decide on their best option.
The Association of British Insurers recently pointed out that cheap life cover can also result from customers volunteering to take a test to ascertain if they are susceptible to hereditary illness.
With the association's code of practice for genetic testing prohibiting insurance providers from requesting that applicants undergo such tests, its representatives emphasised that taking one is an "individual choice" and the prospect of insurance going up or down should not impact on that choice.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
11 January 2008 13:54:37
Fewer people will have their life insurance claims refused as a result of new rules implemented by the insurance industry's trade body.
The Association of British Insurers (ABI) explained that the move marks a commitment to paying out on protection policies, even where people have not disclosed medical information - unless it was withheld deliberately.
Customers' failure to provide relevant medical information leads to thousands of critical illness, income protection and life insurance claims being rejected every year.
As a result of the new rules, according to the ABI, insurers will pay out a "fair sum, reflecting risk and premiums paid" in instances where information has inadvertently been withheld.
Stephen Haddrill, the ABI's director general, remarked: "Customers want to know that their insurance claim will always be assessed fairly and paid without fuss.
"The industry wants customers to be able to take out insurance with confidence."
Legal and General, a leading life insurance provider, responded to the news by reminding customers that those who are known to have withheld relevant information will still have their claims declined.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
08 January 2008 11:13:19
Insurance and income protection for high-risk individuals such as professional football players present a "grey area" for bosses, it has been claimed.
According to financial firm Aon, although national associations are not obliged to purchase cover, some choose to do so.
James Hands, the company's executive director, commented in the wake of high-profile incidents involving players being injured while playing for their countries.
"Every club has a different way of looking at these things - some national associations take out insurance and some don't," he observed.
"They can insure against whatever they want to insure against – whether that be just a player's salary or whether that be a player having an injury that will end his career," he continued.
During a 2006 World Cup match against Sweden, England player Michael Owen ruptured a knee ligament.
The Guardian newspaper reported that the maximum amount his club, Newcastle, could receive in compensation was £55,000 a week from the FA's insurance policy, although this did not cover his full weekly wage.
When he was injured again playing for England last year, the maximum potential figure had gone up to £100,000 per week.
Sports players have the option of taking out their own insurance against injury and to secure themselves against loss of future earnings.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
18 December 2007 10:28:10
The launch of PruProtect by Prudential UK and South African insurer Discovery prompted many people to ask if the latest type of life insurance, income protection and critical illness cover is more of a "gimmick" than anything else.
PruProtect, like PruHealth before it, aims to offer cheaper premiums by rewarding customers for their healthy lifestyles.
So-called "vitality points" - awarded if an individual exercises regularly, downloads healthy meal plans from the insurer's website or quits smoking - can be offset against the cost of a life insurance policy or critical illness cover.
Furthermore, those who take out the cover are offered discount gym membership, free fitness assessments, subsidised heath screenings and discounts on stop-smoking courses.
"PruProtect encourages individuals to take charge of their health and well-being and rewards them for doing so," explained Shaun Matisonn, PruProtect's chief executive, upon the launch of the product.
"Through Vitality, PruProtect supports people when they are well, but is also better able to look after them financially when they are not," he continued.
A major selling point of such premiums is that, with appropriate effort, policyholders could see a 2.25 per cent decrease in prices over the course of a year.
PruProtect's critical illness cover works on a severity basis, meaning claims are proportionate to the severity of the illness - any payout would reflect the customer's needs at a given time.
"Buying a running machine on eBay may not just be the first step towards a fitter lifestyle, it could also cut your private health insurance premiums," remarked the Telegraph's John Greenwood during a discussion of PruHealth.
"PruHealth's latest incentive is a scheme that reduces premiums for anyone who buys certain qualifying sports and health goods on eBay - spend between £5 and £500 on health and fitness goods, from trainers to treadmills, and your premiums will go down," he explained.
Healthcare specialists have pointed out that a life insurance or critical illness product which rewards individuals for healthy behaviour is worthwhile for the "right sort" of customer.
"People need to know what they are capable of when they are taking out a PruHealth policy," Samantha Knight of Chase Templeton told the Telegraph.
"Some people are too busy to go to the gym or know they won't really be able to change their lifestyle," added the spokesperson for the private medical insurance specialists.
She recommended a PruHealth-style plan for people who believe they can maintain a healthy lifestyle, while those who know they will be unable to do so should consult an adviser to decide on their best option.
The Association of British Insurers recently pointed out that cheap life cover can also result from customers volunteering to take a test to ascertain if they are susceptible to hereditary illness.
With the association's code of practice for genetic testing prohibiting insurance providers from requesting that applicants undergo such tests, its representatives emphasised that taking one is an "individual choice" and the prospect of insurance going up or down should not impact on that choice.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online