Job Loss Insurance: A salaried person’s monthly salary covers household expenses, EMIs, and other important bills. Especially those in private jobs constantly worry about what will happen if they lose their job. But now, there’s no need to worry. The solution is Job Loss Insurance.
What is Job Loss Insurance?
Job Loss Insurance, also known as Income Protection Insurance, provides financial support in the event of a job loss.
Its purpose is to ensure that your EMIs are paid on time and your credit history is not damaged. This insurance is often offered as an add-on to home loans, car loans, or personal loans. Some insurance companies also sell it separately.
How many months will the company cover your loan?
Suppose you took out a home or car loan. Suddenly, the company lays you off. In such a situation, the insurance company will cover your EMIs for a few months (Job Loss Insurance Claim). This period is typically 3 to 6 months. This means you won’t face a major financial setback immediately after losing your job.
Who will be eligible for Income Protection Insurance?
This benefit is specifically for private employees whose income depends solely on their salary. However, there is a condition: if you resign on your own or lose your job due to misconduct, you will not be eligible for this insurance. However, if your company fires you or closes down, this insurance will help.