Unemployment Protection, also known as Income Protection Insurance, will provide an income for a 12 or 24 month period to protect you financially in the event that you cannot work due to sickness, disability or unemployment. Unemployment Protection Insurance provides cover in the event of unforeseen unemployment.
Unemployment Protection Insurance is often sold with mortgages, credit cards, and other loans. Unemployment Protection Insurance from lenders can be expensive so it pays to look at policies from independent brokers.
For salary protection, usually the maximum monthly benefit you are allowed to insure is 50 per cent of your normal income. You can choose to receive benefit payments after either 30 or 60 days of continuous unemployment, and benefits will cease after you have received either 12 or 24 monthly payments.
The money received from the insurance policy should not be treated as income, provided the claimant is using the insurance to pay monthly payments on a loan, credit card, mortgage, or similar agreements.
Complete our income protection form to receive a free, no obligation quote from a qualified adviser today!