Due to COVID-19 pandemic, mostly all sectors are going through a lack of work and production /manufacturing predicament which is leading to financial crisis and job loss in the country. From the last two months, we have seen that most of the companies have cut salary, done lay-offs or closed their production/work for the time being.

Due to COVID-19 pandemic, mostly all sectors are going through a lack of work and production /manufacturing predicament which is leading to financial crisis and job losses in the country. From the last two months, we have seen many companies cut salary, done lay-offs or closed their production/work for the time being. 

This is the time when people think of their savings, insurance covers and emergency fund. Many insurance companies in India have started to give job loss insurance covers as well but with terms and conditions. This raises an intrinsic question. Should you opt for job loss insurance cover? 

Let see if this is a good option?

What is job loss insurance cover?

• Job loss insurance cover is not based and available on a standalone basis
• It is an add on cover rider which can be taken with home loan protection plan or critical illness
• One has to pay the additional charge to avail job loss cover as it comes as an add on rider
• Should one opt for job loss insurance cover?
• If you have a high probability of losing a job or you think the sector for which you are working may face some financial crisis in the future then you must opt for this add on cover
• Job loss insurance cover provides you with instant cover relief from the financial crisis
• You need job loss cover or not depend on your job risk and your professional image
• The premium of this add on is totally on the probability of your job loss
• The premium ranges from 3%-5% of the coverage

Premium is calculated on various factors that are taken into consideration to arrive at an appropriate premium such as the age of the individual, tenure of the policy, EMI amount, the credit rating of the insured’s employer, number of EMI’s to be covered etc.
It is a cover which not only provides benefit to the insured but also the insurers

Companies that are offering job loss insurance protection:

1.   ICICI Lombard's secure mind critical illness plan
2.   HDFC Ergo’s Home Suraksha Plus (Home loan protection plan)
3.   Royal Sundaram Safe Loan Shield (Critical Illness Plan)