In the unexpected situation of layoff, you can manage your EMIs through some insurance coverage. A Job Loss Insurance provides financial security in these challenging times. This insurance can cover your loan interest payments leaving you less worried about the future.
Jobs in private sector are uncertain and provide no security for the long term. Many large and reputed companies implement cost-cutting measures where the employees suddenly find themselves with no job. The layoffs can prove to be financially straining too. To deal with these situations and to ensure that you don’t struggle with money issues, it is crucial to take some measures.
In the event of layoff, you can manage your EMIs through some solutions. A Job Loss Insurance provides financial security in these challenging times. This insurance can cover your loan interest payments leaving you less worried about the future.
What is a Job Loss Insurance?
Job loss insurance is an add-on feature offered by life insurance policies. It serves as a form of credit protection. Some insurance providers offer job loss insurance features as part of other policies, while others also offer it as a separate policy altogether.
Benefits
This insurance policy can help you manage your credit card bills, home or car loans, and other EMIs if you are laid off. This coverage provides peace of mind and financial stability during challenging times. In unforeseen circumstances, you can rely on the benefits offered by a job loss insurance.
Insurance coverage
These policies vary from company to company. Typically, job loss insurance coverage is provided for a duration of five years. However, it is important to read every single detail about the policy before finalizing it.
Eligibility
People with full-time jobs can purchase this job loss insurance. Certain age requirements may also apply. It’s important to note that part-time workers and self-employed people are not eligible for these policies.
EMI coverage
Most companies offer job insurance policies that provide coverage of EMIs for at least 3 to 4 months. In this period, people can easily search for new employment without immediate financial strain.
Premiums
The premium for job loss insurance typically ranges from 3-5 percent of the basic insurance premium. For example, if the premium for a loan is Rs 10,000, the premium for job loss insurance may amount to Rs 300-500.
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