For most of us we often prioritize cost as one of the key indicators when comparing unemployment cover.
Over the past 12 months the industry claims have no doubt risen. This has affected some more than others as some providers have kept existing policy holders premiums static and increased the cost for new entrants and other providers who may have provided the cover at rock bottom prices to secure higher volumes have been more aggressive in order to meets claims have had little choice than to pass on signification premium increases a high as 86% or more on two or three occasions.
With the cost of providing cover in todays climate obviously more expensive, and with some providers not offering cover at all this has given some will little option than to stomach the prices increases. Even if they did want to switch cover most policies have an initial exclusion ranging from 30 days, 60 days, 90 days and 120 days on the worst policies before they are active.
Most unemployment policies run on a month by month basis, meaning the provider can cancel your cover, apply a price increase or amend the policy terms all with just 30 days notice. Some providers will offer a guarantee premium for 1 year or will apply price increases to new applicants.
To help identify those providers you want to avoid check:-
- Policy exclusions and small print
- Find out as much as you can about the premium history for the product you want:- How many price increases have been applied in the past 12 months? Has this been applied to all policy holders? How much was the price increase on each occasion in percentage terms? Are there any other planned price increases? Have they ever increased the cost of cover for someone who has just taken out the policy?
Buying cheap unemployment cover is only cheap in that month! next month is could be a completely different story so buy wisely.
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Tags: Payment Protection Insurance, Permenant Health Insurance, Redundancy insurance, Unemployment insurance