Voluntary resignation, early retirement and under effectiveness will not be covered under income protection policies. Before you signal up with one, make sure that you have understood the terms and conditions of the plan and do not fall prey to any insurance mis-sellings. It would be a case of coverage mis-selling if the insurance agent had sold the plan quoting that it could cover under-performance, voluntary resignation and early retirement. Beware of policies which promote these concepts. No coverage will cover an employee if he has been laid off for under-performance. There may be number of exceptions, you need to take a look at ahead of you signal up for one. What does the typical unemployment insurance cover? It covers you if you are given a pink slip for no fault of yours. On grounds of recession, few corporations resorted to down sizing the team size in order to combat the economic crisis. Lot of them lost their job and where thrown in despair. If they were insured less than unemployment protection plan they wouldn’t have witnessed this day. I could also suggest you check out additional research dealing with State Unemployment Tax Rate.