Don’t believe the hype – we are still in recession and unemployment figures are still rising. Yet the number of people taking out unemployment insurance is not as great as you may think. Many people are not even aware that such a policy exists. They are not exactly advertised by the main insurance companies as they are not too keen on taking the business on. This type of cover is also sometimes known as income protection or mortgage payment protection

However there are still many companies that offer unemployment insurance on a standalone basis at a competitive price. This type of insurance simply pays out if you are made redundant. It doesn’t pay out if the following occurs.

• You get the sack
• You were aware you were being made redundant at the time of taking the policy
• You take voluntary redundancy

These are the main exclusions but don’t let that put you off. If you think about it is common sense.

There are a few points to take into consideration when selecting the best policy for you. Many policies may seem cheap but beware this may meant they can take a while to pay out. Here are the things to look out for when choosing a policy.

• Initial exclusion period (choose a policy with the shortest period. Typical periods range from 90 to 120 days.)
• Excess period (again choose one with the lowest. This means in the event of a claim you have to wait for a certain number of days before you receive your benefit. Ranges from 0 to 120 days.

Over the past few weeks and months many insurers have either withdrawn form the market or increased there premiums. In the coming weeks this situation will not get better and you might find yourself unable to get cover full stop. Go online and shop around but do not go for simply the cheapest policy as you might end up not getting your benefit.