Many today are looking to extend their unemployment benefits. Some are looking into private unemployment plans to do this. There are several private companies that offer Unemployment insurance should you loose your job. For a small monthly fee, you can receive a pay out should you become unemployed through no fault of your own. In this article we will look at what you should know before you purchase private Unemployment insurance. We will talk about the pitfalls and things you need to look out for when you purchase these policies.
Before you take out a private unemployment insurance policy, you should first check to see what their claim recovery rate is. If the only ever pay out on 30 percent of their claims then you should definitely look elsewhere. There is no point in paying this extra money only to find out it was a complete waste of time. They are legally obligated to give you this information so don’t be afraid to ask.
If your policy seems to have a lot of pages, think twice before signing. At very least make sure you or someone you trust goes through it with you. This could be an indication that there are hidden things in the Unemployment Insurance agreement. There is no reason you cannot be given a short document with everything outlined in layman’s terms.
Make sure you understand the conditions in which the company will pay out. Many times they will only pay out if you were laid off, not fired. Some companies will try to hide this with clever language as well. If you want full comprehensive unemployment insurance then make sure that is what you are getting. There are several companies that offer this and will pay out provided you didn’t quite or weren’t fired for gross misconduct.
If you are hoping to include accident or sickness cover with your policy, again make sure you understand the terms and conditions. Some companies will only pay out with a very expensive, specialist diagnosis. Try to find a company that will pay simply by seeing your doctor.
Private unemployment insurance can be a good idea. It can offer extra protection in the event of job loss. Those who take on extra unemployment insurance must know what they are getting. Make sure your policy will pay out when you need it to, no when it is convenient for them.