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KingBingo

Unemployment Insurance

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I got a flyer for unemployment insurance today. You pay your fee of say £50 a month and in return if you loose your job they pay out £1500 a month for up to a year.

Given in today's climate some of us can no doubt guess with a certain degree of accuracy that we may be unemployed I wondered if anyone here knew a bit of background on this subject?

http://www.britishinsurance.com/

1. Eligibility

You are only eligible to receive benefits under British Insurance Protection provided that you meet certain conditions. It is therefore essential that you satisfy yourself that the following conditions apply to you:

• I am permanently living and working in the UK.

• I am actively working in paid employment for at least 16 hours per week and I am eligible to register as unemployed.

• My work is not: temporary (including agency work), casual, seasonal, irregular, a period of training/apprenticeship or for a specific task.

• I have worked continuously for the past six months and if not, I am aware that I will need to have done so before I can claim for unemployment benefits.

• I am aware that I must continue to pay my premiums on time.

• I am aware that I will not be covered for any accident or sickness that occurred before the start date of my policy, or for any chronic or continuing medical conditions that I already have.

• If I am a Contract Worker (as defined by this insurance) my contract must be for a fixed term of at least 12 months. Furthermore I am aware of the additional requirements I will need to meet to support a claim following the natural expiry of my fixed term contract.

• If I am Self-Employed (as defined by this insurance) I am aware of the additional requirements I will need to meet to support a claim.

• I am aware that the sum insured under this and similar insurance policies must not exceed 50% of my monthly earned income before tax and if I exceed this limit my benefit will be reduced.

• I am aware of the 120 day initial exclusion period for unemployment or Carer Benefit.

• I am not aware of any impending unemployment, whether or not I have received official notification and my employer has not announced a programme of job losses, any departmental or company restructure or merger with another company. Furthermore, I am aware that I will not be covered for unemployment that arises from any programme of job losses, any departmental or company restructure, or merger with another company, announced by my employer before the start date of my policy, or within 120 days after the start date of my policy.

Edited by KingBingo

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yes a fair bit actually.

When i seen the title i was thinking 'i hope this guys not been sold a dodgy ppi policy - i better get on and recommend british insurance to him, but see that your a step ahead.

I think these policies are pretty good so long as you know what your getting. I would suggest you think about teaming it up with an Income Protection Policy that covers you if your ill for long periods but this is really a risk analysis question for your sefl (as all insurance is i suppose)

Great benefit of these type of polices of IP is that theres no medical underwriting, but i see the one your looking at only cover unemployment. Have a look at something that also covers sickness to and see if that works for you.

main thing is that if your self employed or a contractor it may not be suitable or if you are aware of any impending unemployment or even suspect it, then they aill not cover you. Actually, they will cover you but are unlikely to pay out when you make the claim!

Give me a shout if you need any more answers.

reading your post now, I seem to have just repeated the T+Cs to you but hope it helps in some way!

Edited by CHF

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Three facts about insurance

You can get insurance for anything.

Insurance companies spend massive amounts of time selling insurance.

Insurance companies spend massive amounts of time trying not to pay out.

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main thing is that if your self employed or a contractor it may not be suitable or if you are aware of any impending unemployment or even suspect it, then they aill not cover you. Actually, they will cover you but are unlikely to pay out when you make the claim!

Give me a shout if you need any more answers.

How would they know if I know about impending change?

And what paperwork would they demand to see to prove whatever they wanted?

I ask because my work is not that conventional, its a small business without all the HR infrastructure.

Thanks in Advance

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You can get insurance for anything.

Couldn't last time I tried.

Wanted to insure against being unable to get broadband on moving house. Without a 'net connection I have no work, no livelihood, yet BT won't confirm definitely that you can get it until they have your order for it - which is after you're committed to moving to a place.

So I tried to insure against being unable to get broadband. In the event of a claim, they'd pay for a leased line to do the job. Couldn't find anyone who'd offer that, making it a serious risk to move.

Here's a recent story of why I want it.

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How would they know if I know about impending change?

And what paperwork would they demand to see to prove whatever they wanted?

I ask because my work is not that conventional, its a small business without all the HR infrastructure.

Thanks in Advance

Well you note there is a 4 month moratorium on claims meaning that any unemployment occuring within the first 4 months would not be covered.

After this period I'd envisage this coming down to underwriter discretion. If say for instance you worked at a small car components manufacturer whos core business was suppolying LDV, you might have a tough argument claiming you didnt see it coming.

Not sure they would request paperwork as such. Mooseteas 3rd point is probabaly worth bearing in mind here. If it looks fishy to them, they wont pay out - simples. Of course you do have the Ombudsman to adjudicate if you think theyve not kept their side of the bargain but the T+Cs are ususally fairly robust.

Your position in the firm would be of importnance to i guess. If you were a fairly senior accountant for a company that went out of business 5 months after policy inception, again you would have seen it coming and they would probabaly decline this also.

How small a business? Small enough for everyone to get the kind of feeling that things arent going well? Is this why somebody brought in the flyer?

Perhaps if you could get the exact wordings of the unemployment bit of T+Cs and we could go over them

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