Glossary

Glossary

financial terms explained

Unemployment Insurance

Unemployment insurance is most often taken out in tandem with a loan. It simply means that, unless you become unemployed thanks to your own actions, you don’t have to worry about meeting the monthly repayments on your loan.

For some lenders it is compulsory, when taking out a mortgage or large loan, to take out unemployment insurance as well. Obviously this is for their own protection rather than yours.