Know how FAB personal loan calculator will save your time for your personal loan EMI’s long calculations and also offer you exact results
Personal Loan up to 8 times your Salary
Get personal loan at Lowest Interest Rate
In case you do not have funds in your reserve for covering your expenditure till the time you get another job, there are companies, which provide job loss insurance that supplement the income if you end up in this unfortunate situation.
You will be eligible for unemployment insurance benefits in case you lose your job without any mistake of your own. But the unemployment compensation will be a part of the salary you earned previously, not the entire salary. This insurance can help you in making up some of the difference till the time you search for another job.
Employment loss or job loss insurance offers income in the event of a layoff. It might also cover the closing of a business, job loss, or other covered separation from your employment. Most of the policies do not offer coverage in case you retire, quit, or are laid off from your current job.
For receiving the benefits, you should have been terminated or laid off without any mistake done by you. In case you retire, quit, or get fired, you will not be eligible for any of the benefits. Most of the job loss plans include a waiting period, which can range from 60 days to 6 months before you become eligible for receiving the benefits. The waiting period will start when you enroll in the plan. In case you lose your current job sooner than that, no benefits can be enjoyed.
Some of the policies make payment of the monthly amounts, and the others offer a lump-sum payment. You may be given a limit on the time duration under which you can gain the benefits and on the sum of money, you will receive.
Take your time for researching different employment loss plans before signing up, so that you have the complete idea of the costs, benefits, and eligibility requirements.
Before you decide to make the purchase of job loss insurance, it is important to evaluate the circumstances of employment. Also, review the personal finances for determining whether the risk is worthy of the expense of the payment of the insurance premium.
In case you have a profession or job or career, which is high in demand, it might be at least in some way resistant to recession. In that case, the time taken for finding a new job would be lesser and you might not require coverage. If you belong to a strong job market and are a qualified candidate, you will get hired quickly.
You must maintain an emergency fund, which can cover the expenses and keep you sailing at the time of unemployment. The experts suggest that you have enough money in hand for covering 3-6 months of your living expense. In case you don’t have enough or haven’t given a thought about building an emergency fund, you can start now. Keep aside whatever amount you can for setting up the fund.
Some of the insurance companies and banks sell insurance for protecting your loan called payment protection or loan protection insurance. The payments on credit cards, personal loans, home loans, mortgage, or car finance are covered under this insurance. It is applicable on a short-term basis when your financial requirements arise due to temporary disability or unemployment. You can also opt for personal loan insurance to cover the payment against personal loans.
The kind of job you have and your financial condition will be the basis of deciding whether it makes sense to buy employment loss insurance or not. In case you live from one paycheck to another without savings for supporting you during unemployment, the extra funds from this insurance can help you in clearing your bills.
You must consider what all expenses you can cut off on in case you lose your employment unexpectedly. You might be able to keep up with some of the pay loss, particularly if there is some other working person in your family.
Just like any other insurance product, carefully check the advantages and disadvantages before investing in the policy. Determine if you require it and if it will offer sufficient coverage for making sure that all your expenses are taken care of.