It is an unfortunate fact that economic crises lead to businesses closing and companies laying off employees to cut costs. The main result is an increase in the number of people who need cash injections. Not having a source of income should definitely spoil any chances of your insurance application being approved, but with unemployment insurances, this is a qualifying condition.
It sounds like a contradiction, but just as lenders like to lend money to students who have little or no income, they are also willing to lend to individuals who have lost their jobs but are very likely to find new work within a certain range. a period of time.
However, granting insurance approval without income is not entirely due to blind faith. There is a choice between secured and unsecured unemployment insurances, and the right insurance comes down to the situation the applicant happens to be in.
What are unemployment insurances?
Anyone who has ever lost a job will know about unemployment benefits and other government-sponsored schemes for the unemployed. But these are quite different from unemployment insurances that are available from some lenders.
These insurances are designed to help those who need an infusion of cash to get over themselves, primarily to take care of major monthly expenses. For example, granting a insurance approval without income is ideal to ensure that the mortgage is repaid for the next few months, utility bills are met, and food can be purchased.
However, whether you are taking out a secured or unsecured unemployment insurance, there are conditions that must be met, and some that must be accepted, before you submit any applications.
Unemployment insurance benefits
The basic conditions relate to the practical procedures of the unemployment insurance. For example, if there is no work, then no income; How to pay off the insurance? Well, it’s a matter of resources (like savings) and timing.
The total monthly expenses may be $3,000, and personal savings up to $30,000. This means that the funds will only last 10 months. But paying off a $30,000 insurance can only be $500 a month, so after a year, there’s still $24,000 in your savings.
There are other ways to get approved for a insurance without income. For example, using the equity in your home as collateral means that repayment can be reduced to a minimum, even with no fixed income. Of course, unsecured unemployment insurances may depend on the size of your monthly benefit checks.
Conditions worth considering
There is a clear advantage in getting a secured unemployment insurance. The interest rates are much lower, which makes the insurance repayments repayments each month smaller and easier. It is also possible to get a longer insurance period, which helps reduce repayments even more.
However, many people choose unsecured unemployment insurances because they don’t want to risk their home or any other item unnecessarily. This is where some careful calculations are required, and an assessment of whether or not repayment is affordable.
Of course, the approval of the insurance without income is designed to help the applicant, and not benefit from it. And when the applicant finds a new job, the total debt can be liquidated more quickly under new terms, if he so desires.