Very few people have unemployment insurance in terms of the percentage of working age individuals living in the UK at the moment. Far more have house insurance, car insurance and pet insurance, and yet not one of those entities can help you to make it through enforced time off work. If you are made redundant then there is no going back to work and this could seriously endanger your lifestyle, and even your health as a result of the levels of stress.
Unemployment insurance can actually provide a whole host of benefits for certain individuals, although certain characteristics and circumstances can render an individual ineligible for the cover. For example, to hold an unemployment insurance policy and be able to claim on it if the worst should happen, you would have to be between the ages of 18 and 64, although that may change in the future as a result of older individuals being allowed to work well past retirement age if they so wish.
Of course, there is always a waiting period from the time that you take the policy out until the time that you are deemed eligible to claim, and this may be within one to three to six months. If you feel secure where you are at the moment then this would suit you. However, if you are at risk of redundancy and do get laid off during the waiting period, then it is classified as a pre-existing factor and thus an unemployment insurance policy will usually not pay out.
Unemployment insurance actually provides a monthly wage for individuals who have been forced out of work through no fault of their own. However, it is the terms and conditions of the policy documents that stipulate just how long you will have wait for a payout. All terms and conditions are different from company to company. However, any good unemployment insurance policy will protect you to the best of its ability and keep the debts at bay whilst you begin to look for another place of work!