It is important to bear in mind that each individual insurance policy will have certain differences, but there are some common features which apply to most unemployment insurance policies. If you lose your job for reasons outside your control, your insurance will almost certainly cover you, although you may be required to prove the nature of your loss of employment to your insurer. However, your claim will typically only be covered if you purchased the insurance at least sixty days before you knew about your impending redundancy, and were in full-time employment for at least six months before purchasing the insurance. Remember that if you lose your job as a result of your own serious misconduct, or take voluntary redundancy, your insurer may refuse your claim.
If you have unemployment insurance but have enough money to live on, you will still be entitled to receive payouts as long as you meet the other criteria. It is important to note however that if you apply for state unemployment benefits, the amount you receive may be reduced because your insurance payouts will count towards your means-assessed income. If your unemployment is a result of sickness or injury, your policy should also be able to provide you with cover, but if you are still in any doubt you should check the wording of your insurance policy and contact your insurance provider.
Critics of unemployment insurance claim that it is not necessary because many people who are made redundant are able to support themselves with their existing savings, as well as some state benefits, until they find further employment. It can also be difficult to claim on the insurance, thanks to the typically complex claim criteria, and if you are successful you are covered for a maximum period of two years, which is a relatively short period of time considering the high cost of premiums. Claims criteria include: being made involuntarily redundant, (and asking your employer to confirm this); having been employed for at least six months in a full-time job prior to purchasing the policy; and having been unaware of your redundancy before purchasing the policy.
Your policy is valid once you have begun to pay monthly premiums to the insurance company. When you claim, assuming you are able to meet the relevant criteria, your insurer will make cash payouts for an agreed length of time whilst you are actively seeking employment. 'Actively' implies a concentrated effort on your part (often with the assistance of an employment agency) to find alternative employment after having been made redundant. This is also a condition for the right to receive state unemployment benefits, so it is important that you put in the required effort to secure both new work and continued financial support.
