Suddenly losing our job is an unfortunate situation that could happen to anybody. Some are able to manage a savings account they could rely on. However, for many others, such is not an option, and sudden unemployment would represent a huge setback. Luckily, more and more insurance companies are starting to offer a policy known as layoff insurance.
Having a layoff insurance policy would come quite useful if we were to suddenly lose our job. This way, we wouldn’t have to fall behind covering our regular payments. Thus, finding a job would be easier and maybe even faster, yet, our financial situation wouldn’t suffer as much as without layoff insurance.
What Exactly Is Layoff Insurance?
Layoff insurance is a type of coverage that would help policyholders after an unintentional job loss. This way, they would be able to keep up with rent, groceries, and other everyday expenses during unemployment. Layoff insurance is an excellent investment, regardless of us having a savings account or not. Also, since every day, more and more insurance companies are starting to offer, layoff premiums are becoming much more affordable.
What Does Layoff Insurance Cover?
As it does with any kind of insurance, what this policy covers and doesn’t cover might vary. With most carriers, though, layoff insurance covers job loss caused by the employer, whether because of layoff, business closing, etc. It also covers job loss due to disability, illness or injury, as long as it prevents you from working for more than 30 days.
There are several exclusions that we must keep in mind, however. If we lose or job but were already aware of this happening prior to purchasing the insurance, we wouldn’t be able to receive benefit payments. Also, if we were terminated because our job period ended, or we got fired because of poor performance or inappropriate behavior, layoff protection wouldn’t kick in.
Where Can I Find Layoff Insurance?
If we want to purchase layoff coverage, there are several companies that are currently offering it in the United States. One of the newest ones to jump into the market is SafetyNet, which is part of the CUMIS Insurance Society, Inc. They have four levels of coverage, and the premiums and benefit payments vary from state to state. So far, SafetyNet Layoff Insurance is only available in the states of Colorado, Georgia, Iowa, Michigan, Mississippi, Missouri, North and South Carolina, Oklahoma, and Wisconsin.
We also recommend looking for an experienced and knowledgeable insurance broker to consult alternatives near you. And, if you already have an insurance company, you might want to check with them. Your current carrier might have some kind of coverage plan similar or exactly like layoff insurance. This way, you make sure you have two umbrellas ready for a rainy day, should you have to go through one.