Any help/tips on choosing unemployment cover please?

bob_dob

Hi,
Please could i ask for some help or advice in how to go about choosing some unemployment insurance?
I've heard it's a minefield regarding the small print that can stop it paying out.

Obviously i know i have to read the small print but other than that are there any firms to stay away from, cover to not bother with etc etc.

Also, is a comparison site something to be avoided and to use a good IFA instead?

If it helps, all im looking for is cover to pay my rent, fuel for my car, general living expenses etc, so basically 2/3 my monthly pay.

Thank you all.

ACG

http://www.defaqto.com/star-ratings/find-product/mortgage-payment-protection-insurance/5

Above is a link to the defaqto rating to MPPI/ASU type cover. Some may allow you to take standalone Unemployment cover, some may tie you in with Accident and sickness benefit also.

The link above send you to all of the 5 star rated companies (ie the best ones).

I personally tend to use Select and Protect but im not advising you do, thats just the company i go with in the main.

But yes you could consult an advisor and they could have a look what else is out there.

Fazzer

I would be VERY wary of any of them or any PPI. I was duped into a First Plus PPI/Unemployment cover and they wont honour it. It seems that you need to have pretty much a perfect record to qualify and then an excuse will be found. The devil is in the detail of the contract in umplain English. Beware I think this area of the insurance market is a rip off.

kingstreet

Be careful. Many providers will provide unemployment cover for mortgages but not for those who rent. I guess this may be because of the ability to claim for HB/LHA.

Also, watch out for the three or four month initial period before you'll actually be covered. If you are at risk of unemployment soon, you may be too late...

dunstonh

Beware I think this area of the insurance market is a rip off.

The basic or budget plans can be a complete waste of money. The better quality plans can be highly beneficial.

ACG

I agree with whats being said - i was just answering your question.

If you are in a job with potential redundancy then fine. If however you have an occupation where even if you were to be made redundant you could pretty much go and walk straight into something else then its probably not worth it.

ASU/MPPI i very rarely recommend, you might also want to take a look at Liverpool Victoria Lifestyle protection, LVMLP.com i think is the website, its like ASU but the AS side is far better.

bob_dob

Thank you so much for your kind help.
I shall make a decision this weekend and i wont go for the basic option.

Just a question- I am a 35 year old male with no debt and my only 'real' (important) expenses are 50% of a rent of £450 and a foos bill of around £160 per month. Car tax and insurance both paid for. My income is £20,000 per year or £1330 per month.
Roughly how much should i be looking at and would i get any rent help/benefit being as my gf earns roughly the same.

Also, what is ASU please?
Thank you in advance.

ACG

ASU = Accident Sickness Unemployment.

Ive just done a quick quote for £400 a month benefit waiting 90 days before it pays out £15-18, for £600 its around £20-25.
Sorry i wasnt sure if you meant half of £450 or half of the rent, your share being £450 so ive done 2 quotes.

This is only a quick quote its not binding or anything as i dont have all of your details but it gives you a rough idea. Its also with a company i dont use for ASU but im able to do a quote on their system in seconds.

Jharna

Do any insurance cover unemployment let me know too i will also go for it.

bob_dob

Thank you ACG, that is exactly the ball park figure i was after. Appreciate it! (just to clarify, i meant half of the rent of £450 which is £225)

opinions4u

If you do take such cover out, I'd strongly recommend putting yourself in a position where you don't need cover in future.

A savings contingency fund (ideally 6 months net pay) can reduce your need for cover quite significantly.

Save up. Build yourself a cushion. Much more reliable that expecting a smooth claims process on an ASU policy.