Questions to ask your agent/broker about Unemployment Insurance

How are premiums for unemployment insurance paid?

There is more to unemployment insurance than unemployment insurance rates. Employers pay premiums for government-issued unemployment insurance. Both the federal government and state governments require that employers pay an unemployment tax that is equal to a small percentage of each employee's income. The money collected from the unemployment tax funds unemployment insurance benefits that are paid when you file a claim. If you purchase private unemployment insurance, you must pay the premiums for your policy. Some private unemployment insurance policies that are designed to cover loan payments, such as mortgage unemployment insurance, can be included as part of your loan payment each month.

What is your level of expertise in this area?

If you are purchasing private unemployment insurance, find out how much experience your broker has with this area. Some private unemployment insurance brokers working directly for insurance companies may have considerable experience. If you are buying unemployment insurance to cover a loan, such as a mortgage, car payment, or credit card, you may have the opportunity to purchase unemployment insurance at the time you take out your loan. Talk with your lender about his or her experience including unemployment insurance with a loan, and seek outside opinions if you need more information to fully understand your policy.

What is your customer complaint rate?

Before you settle on an insurance broker to purchase private unemployment insurance, make sure your broker is reliable. Research several insurance companies and your various options for policies so that you are knowledgeable when you meet with your broker. Ask your broker about his or her experience, including any customer complaints. That way, you can choose a broker who you trust to make sure you are getting the policy with the best terms to fit your needs.

How are claims filed?

After deciding on a private unemployment insurance policy, make sure you understand how to file a claim. Make sure you understand when to file a claim, too. Some policies will require that you file a claim within a set period of time after becoming unemployed, in order to collect benefits. Depending on your unemployment insurance company, you may be able to file claims online or over the phone. A good understanding of how this process works will make it easier and less stressful in case you are laid off and need to file a claim.