In these uncertain times, we are all taking considerable measures to save more and spend less of our hard earned money. We are facing our fears and realizing that unemployment can become a reality for all of us. Financial experts tell us that, ideally, we should have enough money in savings to get through 6 months of unemployment. In actuality, there's probably not enough savings in our rainy day fund to get us through much more than a few weeks.
The Government Gives You Minimal Unemployment Income Protection
The Federal government instituted unemployment benefits during the great depression. However, the government will give you no greater than 50% of what your previous salary was, and there is a set maximum you are able to receive each week. It's unlikely that unemployment benefits will be enough to pay your bills-- let alone support the quality of life you're used to. You should also know that if you are self-employed and can't find work, you are not eligible for government unemployment benefits.
Insurance, Insurance, Insurance
There are several insurance policies you can sign up for that will give you unemployment income protection. The three policies you should seriously consider are income payment protection insurance, mortgage payment protection insurance, and loan payment protection insurance. All three types will support you through the stress of unemployment.
Unemployment Income Protection for Your Salary
You depend on your salary to pay your bills, buy food, keep your home, and put gas in your car. Income protection insurance will give you a monthly lump sum, tax free, to keep your quality of life intact. When taking out a policy, you determine the amount you will receive each month based on your salary. This is the broadest form of unemployment income protection as you decide where to put the money that comes in. It is also the most policy with the highest premiums. Should you become unemployed, you have a safety net of cash flow waiting to catch you.
Unemployment Income Protection for Your Mortgage
Your biggest monthly payment is likely to be your mortgage. If your home goes into default, not only do you have the anxiety of being unemployed, you and your family can soon face foreclosure. Unemployment mortgage protection insurance will pay your mortgage loan for a certain amount of time. This policy will safeguard the future in your home and give you time to get back on your feet and enter into the work force again.
Unemployment Income Protection for Your Loans
Unless you're an above average American, then you have several lines of revolving credit requiring a monthly payment. Loan protection insurance is designed to pay your monthly debt obligations in full. This policy will take care of the basics such as your school loans and car payment.
With all the forms of unemployment income protection available, you don't have to go a single month without the cash you need. Find an insurance agent online or locally to help you decide if this type of protection fits your needs and concerns. Do your research and get started finding the unemployment income protection that will meet your needs today!
You need to work more than part time, and self employed individuals and seasonal and temporary employees are not eligible for mortgage payment insurance. Companies may even consider how long one has been self employed as well.
You may want to consider this protection if the loss of your job would put your family in a hardship position. Consider the cost of the monthly premiums, the likelihood of losing your job, and the potential stress and financial difficulty that would come from difficulty in paying your home loan to decide if this protection is right for you. Take charge of your financial future and do your research to see if mortgage payment protection insurance is right for you!