In these times of great economic strife and high unemployment, it is easy to feel un-secure in your job. None of us quite know what is around the next corner and whether we will be in the same job, if any job, in 6 months time.

Despite our employment status, one thing that remains certain is that we need to ensure our loan repayments are kept up to date and fully paid.

So how can we ensure that we can continue to make our loan repayments even if we are made unemployed?
The answer lies with Unemployment Insurance which can be used to cover liabilities such as loans and mortgages to the extent that if the worse happens, the insurance company will cover your repayments for up to 12 months or until your have returned to work.

Unemployment Insurance can be taken either specifically to protect your loan or mortgage, or more generally to protect a percentage of your normal income (Usually between 50% and 65%).

It is always advisable to take professional advice before taking any Unemployment Insurance to ensure that you have an adequate and suitable protection policy.