Many of us today think about the future of our earnings, the security of savings and the right diversification of the financial portfolio. To protect yourself from the unpleasant consequences of dismissal, insurance against job loss will help. Turning to an insurance company, customers often buy a standard insurance contract, or, as they say, a “boxed product”. Unfortunately, people do not delve into its essence and take it only because of the name and risks. And when there is trouble and the insurance company suddenly refuses to pay because the lawsuit is not part of their insurance risk, they are surprised. Let’s take a look at what you should consider when choosing termination insurance.
The first thing you should pay attention to is what is included in the list of insurance risks. It is assumed that if the client loses his job against his will, he will receive payment. Insurance, as a rule, includes: downsizing, dismissal due to refusal to move to another position, change of ownership by the employer, liquidation of the organization.
However, some employers prefer to part with employees using the phrase “by agreement of the parties.” And in this case, most insurance companies will refuse to pay. Such a risk is rarely accepted for insurance, but it is better to look for a policy that will take it into account.
And, of course, you must understand that no one will be insured against dismissal “under the article” if an employee violates labor discipline or comes to work in a drunken state. Insurance is not a panacea, it provides protection in case the employer has to take such a step or acts maliciously.
The second important point is when the payments will start.
Money usually does not arrive in the client’s account the day after the dismissal. As a rule, the period between the termination of the employment contract and the start of payments is about 30 days, but it happens that it is extended up to 45-60 days.
The third important factor is how long the payments will take. The insurance company will transfer the money until the client finds a new job. However, the deadlines for repayment are also set – on average, they are about six months on the market. The vast majority of applicants find a job during this time.
Next, how the amount due is calculated. If a client has lost his job and is insured for 1 million rubles, this does not mean that the next day the entire amount will be transferred to his account. Payments are calculated according to a certain scheme and are received at a certain frequency (every day, twice a month, once a month).
Some insurers transfer an amount equal to (but not more than one value) 1/365 of the salary share each day. For others, this is a percentage of the insured amount – eg 0.5% per day, but not above a certain threshold. Accordingly, if the salary is small, it is more profitable to pay attention to a policy that includes periodic payment of part of the insurance cost.
It is also worth paying attention to how easy it is to declare an insured event. To begin receiving payments, you must declare job loss and provide supporting documents to the insurance. As a rule, these are three papers – a work book with a sign of dismissal, a document confirming the termination of an employment contract. In addition, a document from the employment service confirming the fact of the job search. Some insurance companies require you to bring them to the office in person.
And the last thing that matters when choosing an insurance product is the work experience requirement. Beginners and “migratory birds” will not be able to buy insurance. All insurance companies have requirements for total length of service – usually from 12 months. And the period of service at the last place of work is 3-4 months.
Knowing these features of insurance, you can choose a product that will meet the customer’s requirements and provide real protection in case of temporary difficulties.
The author expresses his personal opinion, which may not coincide with the editors’ position.