Blimey, win win, for the employee (your family member,) and for the company! I'm surprised the insurance company isn't looking a lot more into it though. How long til this family member retires?
As I said, I'm surprised the insuance company aren't looking into it more....
My DH was made redundant some 17-18 years ago, and we instantly contacted the insurance company that we had our unemployment insurance with, to pay the mortgage. They told him he couldn't claim for 6 weeks (some clause in it that we hadn't noticed/didn't know about.) DH didn't apply for any jobs as it was late November, and there would be nothing but temp Christmas jobs.
Around 5 days into the 4 week period (which was 5 days after he finished his job) the company who would be having to pay our mortgage, started phoning DH, and emailing him, and sending him literature on how to get another job. They said they have helpers and advisors who can help him get another job! As if he wasn't fucking capable of doing it himself! 
They kept demanding to know how many jobs he had applied for, and how many interviews he had had. Someone even turned up at our HOUSE (uninvited) 6 days before Christmas day, asking to see DH to discuss the progress he had made so far with trying to get a new job. DH was in bed with a sore throat, and a high temperature. I did NOT let them in, and was very brusque with them.
I said 'how dare you just turn up at our home, badgering my husband. You have not let up on his for the past 3 or 4 weeks, not a single bloody day has gone by without you texting, phoning, emailing, and now coming to see him. It's 6 days to Christmas, and there's no WAY you are coming into our home.' I slammed the door in his face. It was just coming up to 4 weeks since DH had finished his job, and this bloody company were relentless in their badgering him, and they hadn't even paid a fucking penny out yet!
He got a nasty, snarky email the next day, (from them) saying they will not be covering any mortgage payment to him/us, as it seems not enough steps have been taken to find suitable work. They closed the claim. Utter cunts.
tl;dr, We didn't even respond, or get back to them again. We lived off our savings for another month, and DH got another job at the end of January. We cancelled the unemployment insurance, and they had the audacity to demand to know why. DH emailed them back, and asked them if they were having a laugh! He said 'you refused to pay us anything, because allegedly I didn't work hard enough to find another job. Just five DAYS after finishing my last one you were haranguing me.' (As I said, they hadn't even started to pay us anything and wouldn't have done til 6 weeks in.)
They wrote a nasty email back telling DH that he should have read the terms and conditions and small print la la la... He just ignored them. Never had unemployment insurance again after that. Not worth the paper it's written on.