Can job loss insurance benefit you? Better known to people who take out a loan insurance contract to guarantee their credit in the event of job loss or unemployment, job loss insurance can also be useful in other situations. Appeared in the 1980s with the increase in unemployment, the job loss insurer guarantees the borrower the reimbursement of part of his credit maturities when he loses his job for an economic reason (dismissal for the employee or judicial liquidation for the self-employed). However, it remains optional. To take advantage of it, you mustbe on a permanent contract and have at least six months or one of seniority in the company, and be at least 55 years old.
The purpose of the job loss guarantee is to cover employees in the event of dismissal, however, only policyholders who have lost their job for an economic reason leading to compensation by Pôle emploi are eligible for it. Another important point, the reason for the dismissal must be absolutely foreign to the insured, reports Capital city.
Job losses due to these situations therefore do not qualify for it:
Employees on partial or seasonal unemployment and those in early retirement cannot benefit from it either.
Job loss insurance: 12 to 18 months maximum
Compensation rules differ between insurers. The duration generally varies between 12 and 18 months per period of unemployment. Sometimes, the contract may also include a maximum compensation period during the life of the contract as well as a monthly compensation amount, and finally, an overall compensation ceiling over the duration of the contract.
The end of cover age (between 60 and 65 years of age), and the percentage of coverage (20 to 100% also fluctuate. Compensation can sometimes be progressive. As for the cost of this insurance, it depends on your age, profession and salary.
It should also be noted that job loss insurance can also be taken out to prevent a work stoppage.
Job loss insurance: what are you entitled to in the event of a work stoppage?
Some insurers also offer job loss guarantees in the event of a “work stoppage” occurring following an accident or illness. You can then be covered in the event of total temporary incapacity for work (ITT) or in the event of permanent work disability.
The compensation paid in the event of loss of employment is then chosen by the insured (between 150 and 1,500 euros per month), who can enjoy it for a maximum of 12 months on average.