Unemployment insurance- thinking on the turn

Eurozone economic recovery:

Today sees news that the French and German economies are officially out of recession. Whist we cannot be sure that a “double dip” won’t happen; it does bring some interesting insurance strategy to the fore.

JFK once said that; “the time to mend the roof was when the sun was shining”. Well, the same applies for buying unemployment insurance. When the bounce occurs in the UK start doing your research and consider buying an unemployment insurance policy.  If you are one of the fortunate to have been unaffected by it and did not already have unemployment insurance; this is the time.

When is it best to wait?

With all unemployment insurance products, a standard  “time” waiting period is applied to the policy, before it is active and there for you to claim on if needed. This ensures that insurers know they aren’t effectively taking on a certain claim and keeps things fair for both parties. 

Remember, insurance is a risk and in effect requires uncertain outcomes for both parties to work properly for everyone in the "pool" of buyers. You wouldn't want to buy a product where you knew prices were higher because lots of people knew they would need to claim straight away. That might seem a bit of fiddle as it is supposed to support those that are "unsure" and want peace of mind.  

The trouble is, time means waiting. We know this can be frustrating, it is however unavoidable. Logic suggests therefore that the best time to sit out a tedious waiting period is when you are sleeping deeply and living sweetly.

During boom time you can quite easily see out a waiting period, knowing that your job security is better than in a recession. Now you may be thinking; “I don’t need unemployment insurance if my job is safe”, but we know how quickly things can change in this global economy.

Plus, some of our unemployment products can include accident and sickness, so really- although the unemployment element has fallen a little in its urgency, you can make sure you are covered for other eventualities.

Unemployment insurance - think like Warren Buffett!

Despite some of our governing classes’ claims, our economy is still cyclical, meaning that this won’t be the last recession. There might be another mini recession in a couple of years or your business sector might get “out sourced” to cut costs. A competitor might sweep in and steal your companies market share.

There are numerous reasons why unemployment insurance is valid in the “good times”. Good times, turn bad. You cannot be sure when that will happen, so unless you have a fool proof recession predictor or job security meter, get prepared now.

'The famous sage of Omaha, Warren Buffett responded once to a question on his genius ability to trade stocks at a profit. He commented that he generally “sold too early and brought too late”. There is a lesson here, although you might not need unemployment insurance right now, your strategy should be long term.'

Often the greatest players read the game by playing the odds, if you feel safe and the sun is shining for you, get thinking about your preparations for the rain. Start fixing the roof…

For more information on our fantastic services for unemployment insurance,  head online to http://www.insurance4everyone.co.uk/content/products/income

OR call our team on:  0845 355 1150.

 

Thanks!

James*

Marketing & Branding