Pandemic has taken a heavy toll on the lives of people. Lakhs of people have lost their jobs due to pandemic-triggered lockdown. During this phase, people faced paying the EMI of the loan. People realised the importance of future planning so that they can tackle any such situation in any emergency situation. To handle the situation of job loss a job insurance policy can help a lot. A job insurance is a type of insurance coverage that gives financial aid to the policyholder and his family in case of a job loss.
Why do you need job insurance?
Pay EMIs:
There are many companies in the market that offers job insurance policy. In the event of job loss, many types of financial help are given by the insurance companies to the policyholder and his family. If for some reason you have lost your job, then with the help of this policy, you can pay the necessary expenses of your house and the rest of the EMI.
Available as a rider?
Let us tell you that at present, this policy cannot be taken separately in India, that is, it is not a standalone policy. You can take this as an add on cover along with the main policy. Generally, you can take it with health insurance or a home insurance policy. With this, the insured can add job risk to his policy. The benefit of this insurance is available when your job has been lost due to some illness or due to any accident. If you have taken any kind of home loan or any other loan then this policy will help in paying EMI. Along with this, there is also some relief like you will not have to worry about paying EMI in the middle of the month. This will buy you some time to find another source of income.
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What is covered?
- In this policy, you get cover for loss of job, but the reason should be one of the reasons mentioned in the policy.
- The cover is also given in case of temporary suspension.
Who is eligible?
- The person applying should have a regular income source.
- Applicant’s company should be registered. This facility is not available for self-employed people.
How to claim?
- After leaving the job, the person has to inform the insurance company.
- After this, proof of not having a job has to be submitted. You also have to submit other necessary documents as well.
- After the verification of all documents, the insurance company releases your claim.
What is not covered?
- There is no cover in the job lost due to illicit work, dishonesty or fraud.
- Does not cover the probation period of job.
- Cover is also not available is case of VRS.
- Contractual work is also not covered under this policy.