Unemployment insurance is not compulsory, but it may be advisable if you do not have sufficient savings to fall back on should you be made redundant. It may also be advisable to take out unemployment insurance in anticipation of imminent periods of economic uncertainty, when the risk of people losing their jobs increases. On the other hand, many people argue that unemployment insurance is unnecessary and expensive when you compare the cost of premiums to the relatively small payouts offered when you claim.
As with many other types of insurance, unemployment insurance is available from a range of insurance companies as well as banks and some other private insurance organisations. Insurance policies can also be found and purchased on the internet, but most policyholders prefer to discuss the terms and conditions of the policy with an advisor, whether in person or via telephone, before signing.
The exact monthly premiums which you will have to pay will be determined by your insurer, reflecting the level of cover that you choose. For this reason, ensure that you compare similar policies and estimates when trying to find the best deal. It may also be worthwhile comparing alternatives to insurance; for example, it may be more beneficial to put the money which you would have paid to your insurer into a savings account or trust fund instead. This would ensure that you have money saved if you do lose your job, but if you never need to make a claim you will still have access to this money.
If you wish to cancel your unemployment insurance at any time, you should contact your insurer immediately. The longer you wait to cancel the policy, the less likely you are to receive a refund of your premiums. If you cancel your insurance within thirty days of its purchase, most insurers will refund any payments that you have made until this point. After thirty days, you will still be able to cancel your policy and may avoid penalty charges, but it is unlikely that you will be refunded any premiums that you have paid. Even if you do not make a claim on your insurance for the duration of your policy, you will not be entitled to your money back.
