Job Loss Insurance: Even after losing your job, you will not have to worry about rent-EMI, you will get this much money every month..

Every month, there are reports of layoffs somewhere or the other. Sometimes from a startup, sometimes from a big IT company, we get to hear the news of the removal of a large number of employees. In such an environment, the fear of losing the job has settled in the minds of many people. This is the reason why job loss insurance is once again in the news. In case of job loss, this insurance works to give people a financial safety net. Today, we are going to give you all the necessary information about job loss insurance so that if such a situation comes your way, it can be useful for you. So let's know..

What is job loss insurance?

This is an insurance that provides financial help for a few months in case of job loss. If you suddenly lose your job, then with the help of this policy, you can manage important expenses like rent, EMI, bills, or medical. Many companies are offering this insurance policy coverage.

Who is this insurance cover for?

The benefit of this insurance is available only to salaried people working in the formal sector. That is, if you are doing a regular job in a registered company, be it an MNC or a startup, then you are eligible for it.

How does it work?

In job loss insurance, you get a fixed amount every month, that too for a limited time. In some policies, this amount is up to 10,000 every month, while in some, this amount also increases every month. For example, 5,000 in the first month, 10,000 in the second, and up to 15,000 in the third.

There is also an option to get up to 70% of the salary, but the payment starts only when you are unemployed for a few days. The waiting period and cover limit of every policy are different.

How much premium is to be paid?
The premium depends on your salary, profile, and the term of the insurance. If this policy is taken with a group cover or bank link, then it can be a little cheaper.

When do you get the benefit?

The benefit of this insurance is available when you lose your job suddenly, that is, you have not resigned. If your company has done cost-cutting, retrenchment, or the company has closed due to any government order, then in such a case this insurance can be activated.

Nowadays, cases of job loss are also coming up due to AI technology, and experts believe that they can also come under the purview of this cover.

When will you not get the benefit?
If you have left the job yourself, were in the probation period, took early retirement on your own, had a serious illness beforehand or were fired due to performance, then the insurance claim may be rejected. Many companies ask employees to take 'voluntary resignation' by giving a few months' salary after retrenchment, which technically means that you have left the job yourself. In such a case, it may be difficult to get an insurance claim unless you can prove that you were fired.

If you do not want to take this insurance, then keep an emergency fund of at least 6 months. Apart from this, insurance linked to loan EMI can also be a good option, in which the insurance company pays your EMI in case of job loss. Job loss insurance is not a new concept, but in the current situation it has become more practical and important than ever. Especially for those who are working in a sector or company where there is uncertainty of layoffs.

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