When times are tough and individuals realize that the economy is pushing towards a recession, the unthinkable often comes to mind for many people. What will happen if they lose their job? The reality is that even when the economy is thriving, job security is never 100% guaranteed, regardless of the job position an individual holds. With reorganizations and mergers becoming the norm in today’s fast paced world of business, no one is truly irreplaceable. Furthermore, when the country is experiencing economic hardship, this particular concern is further heightened due to the higher risk for companies to cut back on positions and new job openings.
The reality is that we, as individuals, do not have direct control over the economy and, therefore, we must take responsibility for preparing adequately for any positive or negative economic changes. One specific way in which individuals can prevent financial difficulty due to sudden lay-offs at work is having an unemployment insurance policy, also known as employment insurance. There are several types of unemployment insurance policies to choose from based on a person’s individual needs. The two most common types include mortgage unemployment insurance and income payment protection insurance.
For individuals who own a home and live with a large family, mortgage unemployment insurance in particular can be very beneficial. This is because the mortgage payment protection policy under employment insurance provides coverage for the payments on an individual’s home loan. Mortgage unemployment insurance also provides homeowners with a sense of relief because it allows an individual to concentrate on finding a new job rather than struggling to meet monthly expenses.
Income payment protection is another important type of unemployment insurance policy individuals need to consider. This is because when loss of income occurs, one has to question how they will be able to continue maintaining their existing lifestyle. Having an adequate amount of savings set aside is ideal; however, the reality is that, in most cases, people do not tend to prepare in advance for financial emergencies. However, with an income payment protection insurance policy, individuals would be provided with a lump sum of money on a monthly basis to replace their lost income. This enables them to go on supporting their family while they make efforts to rejoin the workforce.
The rules, regulations, and price of unemployment insurance vary from provider to provider, state to state, and country to country. For instance, there can be significant variations between the types of coverage offered under Canadian unemployment insurance versus coverage provided under California unemployment insurance. However, in addition to having a financial safety net, individuals can typically reap the following benefits from unemployment insurance offered by different insurance providers:
- Consistent weekly checks, which can be up to fifty percent of the person’s income
- The ability to receive assistance from a health insurance policy
- Education and training opportunities for the purpose of getting rehired by a reputable company
- Possible food stamp benefits to help with household grocery necessities
- Housing assistance
- Financial management counseling & guidance
Individuals now have the option of applying online for employment insurance. You will need to have the following information and documentation ready before you can begin the application process:
- Record of employment (such as pay stubs)
- SSI number
- Voided check from personal account
- Medical certificate.
In the uncertain world we live in, safety is always a concern but with an employment insurance policy in place, individuals have the ability to instill more certainty in their professional and personal lives.