How do I know if I need unemployment insurance?

Firstly take account of your savings or alternative sources of revenue you might be able to draw on.

To find out if you might need unemployment insurance, ask yourself these 5 questions:

For how long could I survive on my savings?
You need to realistically estimate your total expenditure and then deduct this from any savings you may have or any other revenue you may receive. Unemployment insurance may be unnecessary if, for example, you decide you could adequately survive on your savings.

What are my total monthly outgoings?
You can add together all your outgoings, including household insurance, buildings insurance or motor insurance. Estimate the total expenditure of your monthly outgoings that should include items such as loans, utility bills, council tax, food, transport and not forgetting the mortgage or rent. 

Will the state give me financial help?
Some state benefits are means-tested, and in most cases there are conditions that have to be met, such as your having paid sufficient National Insurance contributions. If for example you have had a mortgage since October 1995, help with you mortgage payments is not available for the first 9 months and then the government payments will cover the interest only. For those with a mortgage prior to October 1995 there is no help for the first two months. The amount of state help with your mortgage following unemployment will vary depending on your own individual circumstances but as a general rule, if you are eligible, the government will pay approximately £57.45 a week (over 25’s).

What are my benefits at work if I become sick or injured?
Following unemployment your employer may continue to pay you an income for a limited time, so during that time you would not need unemployment insurance, in fact you would be unable to make an unemployment insurance claim for any period you are still being paid.  Some employers will only pay Statutory Sick Pay but others may be more generous. Before arranging your unemployment insurance, you should check your conditions of employment

How quickly could I find work?
The answer to this will vary greatly dependent upon your occupation and where you live. Research shows that 63% of workers return to work within 3-6 months so you might want to consider our 3 or 6 month benefit period as an option as well as our standard 12 months benefit period.  The benefit period is not the length of the policy, or the time you must wait before you can claim, it is just the maximum number of months we can pay you for any one period of accident, sickness or unemployment.