Categories: Business

know how a insurance can help you after a job loss

Photo: FILE

Job Loss Insurance

new Delhi. The corona virus epidemic has affected the economy of the entire country. As a result of this, there has been a situation of retrenchment in every sector. People are being fired, salary is being cut because companies themselves are facing demand shortage. In such a situation, the concerns of common people have increased considerably. But perhaps less people will know that if you get a job then you can claim cover through job loss insurance and protect yourself from financial crisis. There are many insurance companies in India that give you insurance cover claim on the job. So know what is job loss insurance cover and who can claim? Also, should one take a job loss insurance cover? You will get the answer of all this through our given report.

What is a job loss insurance coverThe

Job loss insurance is not available separately. You can usually take it with a home loan or with a critical illness or personal accident cover.

This is a kind of add on cover that is taken with other insurance

If you take this facility with a home loan, then with the help of this insurance in India, your EMI of three months is repaid.

This facility works as an income option when you go to work.

No insurance company offers a separate stand-alone job loss insurance cover.

According to ICICI Lombard GIC Chief (Underwritings, Claims and Reinsurance) – “Anyone can lose their jobs due to increasing job instability, mergers or sales between companies, cost reduction plans or any disease, surgery. And may be unable to meet its financial liabilities. Job loss insurance cover helps anyone to meet their financial liability in such a situation ”.

Some companies through which you can get job loss insurance coverThe

1. ICICI Lombard's Secure Mind Critical Inless Plan

2. HDFC Ergo's Home Security Plus (Home Protection Plan)

3. Royal Sundaram's Safe Loan Shield (Critical Inless Plan)

Who can claim job loss insurance coverThe

If someone's job has gone away due to non-medical reasons

While taking an add on cover, insurance cover is available even if you leave for medical reasons.

If the company is suddenly shut down, declared insolvent, then the cover is provided through add on service cover.

Keep in mind that if the job loss insurance cover through a home protection plan is valid for only five years. No cover is available for the entire home loan tenure

Most experts believe that it is better to keep the Emergency Fund deposited continuously than taking the Add on Job Loss Insurance cover. According to FinSafe India Pvt Ltd & K Founder and Vomantra Co-Founder Mrun Aggarwal, "Special rules and regulations apply to claim job loss insurance cover, which is why job loss insurance cover does not prove to be as profitable." Due to different rules, it would be advisable that people should not continue to depend entirely on the cover and keep depositing the emergency fund against their 6-12 months of expenditure. ”

Before making a job loss insurance claim, you need to know your add on cover very well.

Who can not claim job loss insurance coverThe

If you have your own business or you are already unemployed then you cannot claim cover

If you have been suspended from poor performance, fraud, retirement, termite or company

Even if you are in probation and the job is lost, the cover cannot be claimed.

Job loss from any disease not mentioned in the add on cover

No cover is available even if you take early voluntary retirement

People working on temporary or contract will not get cover

Special things related to insurance:

The insurance company gives cover after three months waiting time on leaving the job.

You can claim only once during the entire policy term

The insurance company pays your three-month EMI, which is around 50% of income.

Every insurance company has different terms and conditions for claiming the cover.

If the company leaves the company when it is merged or merges, then you can claim it or not.

Get insurance from the insurance company if you get a termination letter before the contract.

If you have been removed from your job, to prove that you do not have the right documents, then you should know in advance what to do

Insurance premiums have to be deposited between 3 percent to 5 percent.

Always keep in mind that job loss insurance can be available only to job seekers. Insurance helps you to take financial liability on the go. In today's situation, the risk of job loss has increased significantly and people are falling victim to financial crisis. In such a situation, the advice of experts is that instead of taking job loss add on insurance cover, you should keep accumulating emergency funds (equal to 3 months of expenses) so that you can get help in your time of need.

This post was published on June 3, 2020 1:58 am

Content Team

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