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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of insurance is generally renewable and/or reviewable, often on a monthly basis or annual basis, and can therefore be withdrawn by the insurer if economic conditions turn against them.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
Friends Provident-Resolution deal nearing completion?
10 September 2007 13:52:43
UK life insurance
provider Resolution has increased the possibility of a £7.9 billion merger with fellow life cover leader Friends Provident.
According to the Financial Times, Resolution has lowered the bar for the merger to be approved, now only needing a majority vote from its shareholders, as opposed to the previous figure of 75 per cent.
It is thought that Resolution chairman Clive Cowdery has lowered the bar in an effort to prevent opposition to the merger.
Pearl Assurance head Hugh Osmond - a 16.5 per cent shareholder in Resolution - is strongly opposed to the deal and has mooted a counter-bid.
However, Resolution representatives remain convinced that teaming up with Friends Provident is the best decision.
"The restructuring of the merger is in the best interests of our shareholders as a whole, as it allows the transaction to proceed without disruption, in the absence of any competing offer for Resolution," commented Mike Biggs, Resolution chief executive.
Resolution has claimed that the proposed merger could save the companies over £100 million.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, and critical illnesslife insurance policies online.
The life insurance maze: Finding your way through
29 November 2007 10:00:00
A report released this month revealed that the UK government's key forecast for longevity, used in the life insurance and pensions industry, may have "significantly miscalculated" how long people will live in the future.
Figures produced by the Cass Business School showed that life expectancy for males born in 1985 could be 91, six years higher than the Office for National Statistics' projection, while data on women has yet to be finalised.
The information has led many financial experts to recommend that individuals sort out their "safety net" before life insurance premiums shoot up in response to demographic changes.
"If there are people in your life who depend on you financially, then life insurance is arguably your top financial priority," remarked Jane Baker from the Motley Fool website.
Although the process of taking out a life premium which provides a lump sum in the event of death during the policy term is relatively straightforward, it has been noted by numerous insurance specialists that securing the most suitable plan with sufficient protection is more difficult.
"It is essential to have cover that fits your exact needs, rather than something that just loosely fits," suggested Jane Baker.
One of the most common reasons that people invest in personal life insurance is to take financial care of those left behind when they die, or to relieve loved ones of the financial aspects of their death.
Another motive is a desire to pay off outstanding debts, for example a mortgage, other loans or credit card balances, while the wish to provide money in the event of a disease or critical illness diagnosis is a spur for many individuals.
Paul Wolf, president of Innovative Benefits Consultants, pointed out that a life insurance policy can also be used to make a donation to a favoured charity.
Outlining the various types of life cover, he compared term insurance to renting a flat.
"It builds no equity within the policy; if you stop paying premiums, the coverage ends," explained the financial specialist.
"And just like the rental lease on an apartment, the premiums can increase after the initial term of the policy ends, but in the short term it offers the highest amount of coverage for the lowest cost."
In contrast, according to Mr Wolf, whole life insurance is like buying a house.
"The upfront costs and annual premiums are usually higher than term insurance, but those premiums are generally fixed throughout the term of the policy. Most whole life policies offer a build-up of equity within the policy with significant tax advantages in that build-up."
For those who prefer to take the middle ground on financial matters, universal life cover presents a flexible combination of term and whole life options.
"The bottom line is that life insurance is for the living, not the dead," concluded Paul Wolf.
"Those who depend on you or will be left with a burden when you die are the ones who might need the life insurance on your life."
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, and critical illnesslife insurance policies online
Take time out to explore insurance options
15 October 2007 13:13:09
Employees should take time every month to look at income protection, unemployment cover, life insurance and other options, according to AXA.
The life insurance provider has reminded bosses and workers alike of My Budget Day on November 21st, a national initiative to encourage UK adults to commit an hour a month to organise their finances.
"Money is one of the major causes of stress for adults and as such it is a major cause of employee absenteeism," commented AXA's Steve Folkard.
"The annual cost of stress to UK plc is estimated to be around £9.6 billion," he added.
AXA has already pledged an hour to its 12,000 employees to consider options such as low cost life insurance or critical illness life cover.
The firm pointed out that employees already cost employers over £1 billion every week by wasting time on "non-work related activities" such as gossiping, texting and emailing.
A report from Norwich Union recently showed that many Britons do not give enough thought to safeguarding their financial futures through solutions such as life insurance, critical illness cover or unemployment protection.
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.
10 September 2007 13:52:43
UK life insurance
provider Resolution has increased the possibility of a £7.9 billion merger with fellow life cover leader Friends Provident.
According to the Financial Times, Resolution has lowered the bar for the merger to be approved, now only needing a majority vote from its shareholders, as opposed to the previous figure of 75 per cent.
It is thought that Resolution chairman Clive Cowdery has lowered the bar in an effort to prevent opposition to the merger.
Pearl Assurance head Hugh Osmond - a 16.5 per cent shareholder in Resolution - is strongly opposed to the deal and has mooted a counter-bid.
However, Resolution representatives remain convinced that teaming up with Friends Provident is the best decision.
"The restructuring of the merger is in the best interests of our shareholders as a whole, as it allows the transaction to proceed without disruption, in the absence of any competing offer for Resolution," commented Mike Biggs, Resolution chief executive.
Resolution has claimed that the proposed merger could save the companies over £100 million.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, and critical illnesslife insurance policies online.
29 November 2007 10:00:00
A report released this month revealed that the UK government's key forecast for longevity, used in the life insurance and pensions industry, may have "significantly miscalculated" how long people will live in the future.
Figures produced by the Cass Business School showed that life expectancy for males born in 1985 could be 91, six years higher than the Office for National Statistics' projection, while data on women has yet to be finalised.
The information has led many financial experts to recommend that individuals sort out their "safety net" before life insurance premiums shoot up in response to demographic changes.
"If there are people in your life who depend on you financially, then life insurance is arguably your top financial priority," remarked Jane Baker from the Motley Fool website.
Although the process of taking out a life premium which provides a lump sum in the event of death during the policy term is relatively straightforward, it has been noted by numerous insurance specialists that securing the most suitable plan with sufficient protection is more difficult.
"It is essential to have cover that fits your exact needs, rather than something that just loosely fits," suggested Jane Baker.
One of the most common reasons that people invest in personal life insurance is to take financial care of those left behind when they die, or to relieve loved ones of the financial aspects of their death.
Another motive is a desire to pay off outstanding debts, for example a mortgage, other loans or credit card balances, while the wish to provide money in the event of a disease or critical illness diagnosis is a spur for many individuals.
Paul Wolf, president of Innovative Benefits Consultants, pointed out that a life insurance policy can also be used to make a donation to a favoured charity.
Outlining the various types of life cover, he compared term insurance to renting a flat.
"It builds no equity within the policy; if you stop paying premiums, the coverage ends," explained the financial specialist.
"And just like the rental lease on an apartment, the premiums can increase after the initial term of the policy ends, but in the short term it offers the highest amount of coverage for the lowest cost."
In contrast, according to Mr Wolf, whole life insurance is like buying a house.
"The upfront costs and annual premiums are usually higher than term insurance, but those premiums are generally fixed throughout the term of the policy. Most whole life policies offer a build-up of equity within the policy with significant tax advantages in that build-up."
For those who prefer to take the middle ground on financial matters, universal life cover presents a flexible combination of term and whole life options.
"The bottom line is that life insurance is for the living, not the dead," concluded Paul Wolf.
"Those who depend on you or will be left with a burden when you die are the ones who might need the life insurance on your life."
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, and critical illnesslife insurance policies online
15 October 2007 13:13:09
Employees should take time every month to look at income protection, unemployment cover, life insurance and other options, according to AXA.
The life insurance provider has reminded bosses and workers alike of My Budget Day on November 21st, a national initiative to encourage UK adults to commit an hour a month to organise their finances.
"Money is one of the major causes of stress for adults and as such it is a major cause of employee absenteeism," commented AXA's Steve Folkard.
"The annual cost of stress to UK plc is estimated to be around £9.6 billion," he added.
AXA has already pledged an hour to its 12,000 employees to consider options such as low cost life insurance or critical illness life cover.
The firm pointed out that employees already cost employers over £1 billion every week by wasting time on "non-work related activities" such as gossiping, texting and emailing.
A report from Norwich Union recently showed that many Britons do not give enough thought to safeguarding their financial futures through solutions such as life insurance, critical illness cover or unemployment protection.
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.