What Happens When Unemployment Insurance Is Not Taken?

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Unemployment insurance is taken in order to take care of all family expenses and commitments in the event of an emergency. It is imperative to take unemployment insurance at the right time in order to get the benefit of this unemployment insurance at the right time. When a person is having a stable job and the means to pay all his/her household expenses, utility bills and mortgage payments, he/she should decide to take an unemployment insurance policy. The availability of this unemployment insurance policy will ensure that all these expenses are taken care of in the right manner even when the bread winner of the family loses his/her job in unforeseen circumstances.

A lot of people feel that they do not have to take an unemployment insurance policy. They feel that their educational qualification, and work experience will be sufficient, and it will enable them to find another job very quickly in the event of a layoff in their current organization. But finding another job can sometimes prove to be an extremely difficult task. The widest network of friends and professional contacts can sometimes prove to be insufficient in order to find the right kind of job in such an emergency situation when a job is desperately required.

Certain people decide to start a savings scheme in the very early stages of their career where they set aside a certain portion of their income every month in a savings plan. This money, which has been accumulated will prove to be very useful in the event of an emergency like the sudden and unforeseen loss of a job. But every person will not be able to accumulate enough money to last for such a long time period. Hence it is imperative for every person to get an unemployment insurance policy in order to tide over such an emergency. Most households will not be able to function properly for more than three months even if they have some money set aside in the form of savings.

Companies specializing in providing unemployment insurance state that a person who has lost his/her job will usually require at least eight months finding an equally good position in a different organization. Monthly savings will not be sufficient to take care of all the expenses which will be incurred during this time period. Only a good unemployment insurance policy will help the family to tide over these difficult times. A lot of people become aware of the actual situation of their finances only when they find that they do not have an income. When they do not have unemployment insurance in such a situation, they will have to take a loan or some other kind of debt in order to meet the basic expenses of their family. Even after finding a job, a sizeable portion of their income will have to be utilized in order to pay off the loan that has been taken at the time of unemployment.
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