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Insurance for Unemployment

Unemployment Insurance safeguards you against the loss of your job. Thus if you become unemployed through no fault of yours as stated in the federal law, Unemployment Insurance will reimburse you for the loss of your income due to unemployment. It is notable that in most cases you will not have to make any contributions for the policy to go into effect if you happen to be unemployed because normally Unemployment Insurance is purchased by employers who think about their employees' welfare. Therefore, the money for benefits usually comes from employers. There are only three states which require minimal contribution payments on the part of employees.

The benefits you can receive under an Unemployment Insurance policy are fixed by the law and they depend on your work record in the period which is known as the base period. The base period is usually 12 months, but it can vary be state. The amount of your benefit is also directly related to your total wages during the base year and the total amount you earned while working. It should be borne in mind that in most of the states benefits can be paid out for a maximum term of 26 weeks. In the period of high unemployment you can be liable for extended benefits covering a longer period of time.