Unemployment Insurance and Benefits
Unemployment in the present-day economic state of the US is at an all-time low in 50 years. However, if you’ve been employed for any length of time you likely have had the unpleasant experience of being unemployed. Most of the US population are barely able to pay their bills and cover their monthly household expenses. Living pay check to pay check is an anxious state to be in, most of us have been in this situation at one time or another. It does not help to factor in the possibility of unemployment. This guide will show you what you need to know about unemployment insurance and provide you a foundation to make an informed decision.
Reliant on the type of Insurance you choose or qualify for, note, that you may not be eligible for Public benefits if you work only part-time or are within the age to retire.
What is the Difference Between Private Unemployment Insurance vs. Government Unemployment Benefits?
For starters, don’t confuse unemployment insurance and public insurance. Unemployment Insurance is coverage purchased through a private insurance company that will cover your monthly expenses in the event that you lose your job. Public unemployment will cover bills if you meet with specific requirements and you lose your job through no fault of your own.
How to Apply for Public Unemployment Benefits?
States operate their own Unemployment Insurance programs. Click here to search for your state. You will need documentation that supports your citizenship, previous employment, personal information. You will then file an application and submit a claim for Unemployment Benefits. Your states’ Unemployment department will ask you questions regarding your employment history and the reasons you are unemployed.
Do I need Private Unemployment Insurance?
The benefit a private unemployment insurance policy is to guard against unemployment and protect your assets in case you lose your job and can’t pay your bills. If you’re in a situation of searching for work, bills can mount up fast. How long could you continue to make payments on your home and pay your other living expenses if you lost the job? Losing employment can happen unexpectedly, this is a situation when paying a monthly premium for a UI policy can save your from severe financial repercussions.
Restrictions: Most policies will require that you only receive benefits if you are involuntarily employed. Payments can be withheld if you’re fired for cause or you quit your job.
Specific coverage getting more difficult to locate: Most companies are no longer offering unemployment insurance policies alone. You may have to purchase this kind of coverage in conjunction with other policies.
Waiting intervals: a lot of policies have a 6-month waiting period once you purchase a policy before you can receive benefits.
Affordable rates: Of all kinds of insurance, unemployment policy is at the top of cheap coverage.
Gains are tax-free: The cover outs you receive throughout the claim period aren’t allowable, offering a brief respite to aid with paying household expenditures.
Redundant policy: so long as you continue to make premium payments, the policy can pay out benefits on multiple occasions.
Variation of plans provided: Payouts can be deferred for 30, 60 or even 90 days depending upon your needs.
It’s likely that if you have a home, you may have been offered some sort of unemployment insurance before through Home insurance companies. You will want to compare these offerings with others. Remember unemployment insurance that is supplied through a mortgage or home insurance company, may provide funds to pay your mortgage but likely will not pay for any additional expenses.