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Every day in the UK over 500 people are made redundant and 60% of those people are out of work for more than six months.
But people who are made redundant still have a liability to maintain their loan repayments. Therefore, the money for those repayments will have to come from savings or a Loan Payment Protection Insurance policy.
If you are tempted to buy Loan Payment Protection Insurance you must be sure that you are likely to qualify for a payout. As with all insurance, Loan Payment Protection policies do have terms and conditions that define the circumstances in which a claim will be valid. These circumstances do vary between companies and you are advised to read these conditions carefully before deciding to buy. For example, some insurers won't allow you to claim for unemployment until you've had the policy for 120 days. You may also need to have been in the same job for six months before you are eligible to claim. If you are on a fixed-term contract or are self-employed, the terms will be different. If you are a part-time worker you are unlikely to be insured unless you work over 16 hours a week.
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