Unemployment protection insurance provides income protection for loss of earnings as a result of involuntary unemployment. Most of the times though one shall find an alternative employment easily and quickly. But it may also not turn out this way. And then the pressure of repaying the Loan, day-to-day expenses, piling up credit card and other bills will start surfacing.

Unemployment protection is the need of the hour. It shall take care of your timely repayments and day-to-day expenses for a period of time in which one shall be likely to arrange an alternative employment for oneself. There are various companies that are offering different plans that may suit one’s requirements. But before buying one should understand how it works –

Who Shall Qualify?
There are criteria that one should be able to fulfill to qualify for the unemployment protection. One should be a UK resident, aged between 18 and 64 and working for a considerably long period. One should also have been working for certain number of hours in a week that may vary from plan to plan.

Do Not Take the Pressure
One will find a number of companies offering one various kinds of plans. In order to sell their policies they may even keep one misinformed about certain important facts. Like they can also tack an accident sickness insurance policy along with your unemployment protection cover on the grounds that the former is free of cost. But actually the costs are incorporated in the unemployment protection. One should be very alert and understand all key things of the cover.

Filing an Unemployment Claim
Once one has bought the right plan for oneself, one also needs to know how the claims need to be filed. There are various considerations that the insurance provider has to take care of. The basic Eligibility conditions have to be met.

Basic Eligibility Conditions
One must meet the following basic eligibility conditions to claim the insurance. These are

• Monetarily Eligible – To calculate monetary eligibility wages are drawn fro a one year period known as base period.

• Totally or Partially Unemployed – One cannot file for a claim if one is self employed on a full-time basis.

• Must Have An Approvable Job Separation – Whether one quits, retires or is discharged from the job, one has to attend a hearing to determine one’s eligibility to benefits.

• Legal Requirements –One must meet legal requirements such as whether one is physically and mentally able to work, whether one is available for work and whether one is seeking work, etc.

Thus, a careful selection of such a plan is a must or else one would find oneself in a deep trouble in difficult time of one’s life.

By Nancy Dodds of Financemate.co.uk