Buy a term plan and secure your family
Sudden, unexpected unemployment can introduce a series of troubles in a person’s life. Several expenses, loans, bills and even savings are at stake if a situation like this arises. On top of that, many families and individuals mostly have a single source of income. Losing a job in such a situation can introduce several unwanted hardships with no resources to deal with them. Involuntary loss of employment insurance or job-loss insurance in the UAE is a tool that can be very helpful in managing your finances in such unfortunate times. A job-loss insurance plan comes into effect when the plan holder loses their job for reasons they had no control over. The insurance cover helps in paying a part of your loans or bills and covering other finances.
Simply speaking, job-loss insurance in the UAE offers you compensation if you lose your job. This compensation can either be a lump sum or distributed over several months. Some job-loss insurances in the UAE may also offer this compensation differently. Depending on your provider, a job-loss cover can help in covering a part of your credit card expenses, loan amount or lower the interest rate on your further credit card expenses. The main thing to consider here is the reasons for which one loses their job. Voluntary quitting your job is not covered by a job-loss cover.
The factors that define the involuntary loss of a job can be a little hard to segregate when it comes to job-loss insurance covers. On a basic level, if you lost your job due to reasons like firing and lay-offs, it is considered as an involuntary loss of employment. However, further layers can be added to this condition as well. If the lay-off was a result of poor performance or anything faulty on the part of the employee, the job-loss cover may not come into play.
The benefits offered by a job-loss insurance plan can highly depend on the insurer. The basic benefits that may be offered by a job-loss cover are:
The following scenarios and conditions can be considered as exclusions or render your job-loss insurance in the UAE inapplicable:
Most banks and financial institutions offer job-loss insurance covers along with credit cards, personal loans, personal accident cover and life insurance in the UAE. This means that a job-loss cover can only be taken as a complementary benefit when you register for a credit card with a bank or take personal loans. There are a few financial institutions and insurance providers that provide this cover even without any active loans or credit cards.
Most job-loss insurance providers are either banks themselves or insurance companies working in collaboration with them. Given below are the top few providers of job-loss insurance in the UAE:
The eligibility criteria for getting job-loss insurance in the UAE can differ for all providers in most cases. If the insurance is being provided by a bank with a credit card or loan, you need to have either of the two to get job-loss insurance in the UAE. Given below are the basic eligibility criteria that apply in almost all cases:
Every provider has a slightly different procedure when it comes to the claim procedure of job-loss insurance plans. It generally requires you to fill up the custom-designed form by the provider and submit it to begin the claim process. After the basic required investigation, the promised cover in the insurance plan begins and you start receiving the compensation amount.
Job-loss insurance in the UAE is well worth an investment to deal with complicated financial times smartly. Apart from the aforementioned providers, several other financial institutions offer this small but significant cover combined with life insurance plans, credit cards, bank accounts, etc. Consider it as an added layer of much-needed protection for all of us. Just make sure that you always check out the complete list of benefits that you will get when buying job-loss insurance in the UAE. Stay alert, compare well and buy smart to deal with job loss in the UAE tactfully.