IS THERE ANY INSURANCE TO PROTECT THEMSELVES AGAINST UNEMPLOYMENT?

IS THERE ANY INSURANCE TO PROTECT THEMSELVES AGAINST UNEMPLOYMENT?

The employment situation in recent years has made that many people have is what they would do if the circumstances which were, they would be unemployed. Moreover, the concept of indefinite contract is something that does not have today the same sense or the same value that a few decades ago. And it is that the longed "job for life" is almost a utopia, unless you're a civil servant (and to know what will happen with this in the future).

For these reasons, many people wonder if it is possible to buy insurance that covers them if you become unemployed. Fortunately, the answer is that Yes, there is insurance for this, since the unemployment benefit is not usually enough to cover many expenses which we embarked when we have a job with indefinite contract. He is payment protection insurance. This type of insurance is making to guarantee the payment of the mortgage or a personal loan from the insured while he finds another job.

An important point that is worth mentioning is that this type of insurance can be found as additional coverage in determined safe, such as home insurance. In addition, banks tend to offer this type of insurance along with the mortgage or loan. In fact, some banks require it as a mandatory condition for granting a mortgage or a personal loan. In these cases, the premium usually included within the loan or mortgage. However, you also can hire payment protection insurance independently with an insurer. Be a condition indispensable to get a loan or mortgage does not imply that it is obligatory that you purchase it with the entity offering the loan.

WHO CAN HIRE A PAYMENT PROTECTION INSURANCE FOR UNEMPLOYMENT

Payment protection insurance are not for everyone. This type of insurance are available only for certain types of workers. In addition, they have a number of limitations which is important to keep in mind.

To be able to hire a payment protection insurance for unemployment must be a worker employed with permanent contract of more than 13 hours per week with a minimum age in the company (usually six months).

LIMITATIONS AND EXCLUSIONS

These insurance tend to have a grace period and a limit of monthly payments and amount for compensation. In terms of lack, this is usually for one or two months. In regards to compensation, this is usually to request when there have been unpaid for 6 months in a row or 12 alternate months, up to a maximum of 12 months in a row or 24 alternate months (depending on the contract products).

In addition, note that not all unemployment payment protection insurances cover 100% of the fees. Some set a fixed limit or a percentage of the payments.

Another thing to keep in mind is the period of validity of the insurance. When unemployment payment protection insurance is contracted with the Bank along with the mortgage or in conjunction with a personal loan, the validity period is usually 5 years (for mortgages) or 10 years (for personal loans). This is something that needs to be checked when you hire this type of insurance.

Another aspect to be taken into consideration is that the unemployment payment protection insurance do not cover the insured when you lose your job for a coming layoff, or when is unemployment which decides to terminate the contract, when it comes to an opt-out or when job loss is due to an early retirement. In the case of unfair dismissal, insurance will not take care of compensation if the insured receive compensation by the company.