Trump! Brexit! Worried you’ll lose your job and not find another easily?
The decision to leave the EU, and concern over Trump’s policies on Trade Agreements, has the potential to put jobs at risk here in the UK. Whether you work in the North East within the motor industry or in the back-office of an investment bank there is concern over job losses as companies lose access to a market and/or decide to relocate abroad.
Estimates of potential job losses abound, with suggestions that around 100,000 jobs in the financial services sector could be lost with redundancies across the UK totalling almost a million people. But there is a solution. Unemployment Insurance will ensure that you will still have an income should you lose your job through involuntary redundancy.
Unfortunately, many people don’t start looking for this cover until their company had already announced redundancies, at which point it is too late to take out cover with most providers.
It’s important to remember that if you choose Unemployment protection on its own it’s because you are worried you may lose your job, if this is the case you will also lose any protection for accident and sickness your company provided. So consider all the aspects of Income Protection rather than just unemployment on its own.
If you know there is a real possibility of being made redundant then great care is needed when looking for unemployment plans as policies taken out online, or without independent advice, are often only underwritten at point of claim and not at the outset of the policy resulting in many claims not being paid out.
As an example, if you are 30 and can survive 30 days before you need an income then a premium of around £37 per month would provide you a monthly income of £1,000 for up to 12 months.
Knowing you’ve chosen the right protection solution is only achieved if you have received professional advice. There are many Protection providers and each has their own specialisations and exclusions which means policies taken out online or without independent advice are often not paid out.
Lightblue Online was set up to provide specialist help to people unsure how to go about choosing from the many Protection products available. For example, some insurers wouldn’t consider you if your company had made an announcement in the press of redundancies whilst others would unless you had received a formal letter stating that your job is at risk. So it’s important to make sure that if you’re buying a policy it’s the right one for you.
Our specialists will help you to navigate all the options to find the cover that is right for you and your family at an affordable rate.
As with all things the more options you choose the higher the price. Income is no different and different insurers load the options differently. It is therefore important to determine what you need and what you would like so we can find the best Unemployment policy available to you in the market place. Below are some of those options.
The number of weeks from when a policy starts before you can start to claim for unemployment. This can vary from Insurer to insurer but is typically 60 days.
The number of weeks or months you can survive on, for example, your savings or company sick pay before you need to receive the income from the insurer. The longer the period the cheaper the cost.
Typically 12 or 24 months or for longer term policies, if you are unable to return to work, up to your selected retirement age. The shorter the period the cheaper the cost.
Level or Indexed
‘Level’ means that the amount you receive will remain the same throughout the time you have the insurance regardless of whether your income or expenditure increases. Alternatively, the amount you receive can increase each year in line with inflation using either the retail price index or the consumer price index. With some insurers this can be declined on an annual basis.
Guaranteed premiums would suggest that what you pay stays the same throughout the policy term unless you increase the required income amount. For some policies this is true, you pay the same amount month after month until the policy ends. For others its guaranteed to increase based on a rate table which means the price you pay in the future for each £1 is guaranteed to go up each year at the rate set out in the guaranteed rate table sent with your policy. You can, therefore, calculate what your premiums will be in the future..
If your premium is not guaranteed then the premiums can change each year due to age or changes to your health. Reviewable policies usually start cheaper than guaranteed policies, but they may end up being more expensive.
Own or Any Occupation
When the ‘Own Occupation’ definition of incapacity is chosen the policy can pay out for any medical condition that prevents you from working in your own specific job role. When ‘Any’ is used the insurer will only pay you if you are unable to perform any occupation. ‘Own’ is more expensive than ‘Any’.
Waiver of Premium
If Waiver of Premium is selected then when you begin receiving an income from the insurance policy the premiums no longer need to be paid until you return to work or your selected pay-out period is reached.