The specter of layoffs shakes many working people.

Because if some sectors allow employees to change companies without ever fearing precariousness, others, on the other hand, leave many workers behind.

Unemployment benefits paid by Pôle emploi are provided for in this case.

But some insurance companies offer to supplement this envelope.

Do not confuse everything

Very little developed in France, the private job loss insurance market comprises two very different types of products. Most often, it is during their efforts to obtain a mortgage that individuals first hear about this type of coverage. This option is indeed part of the guarantees offered under the famous borrower insurance, essential for home ownership. The goal is to cover the monthly loan repayments in the event that you lose your job.

What is less known is that there are also offers independent of any real estate purchase.

Also called job loss insurance or unemployment insurance, these contracts are intended quite simply to compensate for a drop in income, in addition to the legal indemnities paid by Pôle emploi.

Beware of exclusion cases

At first glance, it seems rather wise to guard against the financial consequences of unemployment when working in a sector in crisis.

Except that the access conditions are often very strict.

Whether or not the cover is linked to a mortgage, the CDI is required, sometimes even with a certain seniority.

Likewise, these contracts target the youngest working people, generally excluding those who have reached their fifties.

Moreover, it is the terms of termination of the employment contract that are limited.

To be able to benefit from this support, you must have involuntarily lost your job.

In short: you must have been made redundant, whether for economic reasons or for personal reasons (professional incompetence, misconduct, etc.).

Resignation and contractual termination are therefore not covered, nor is the situation of partial unemployment (since the contract is not terminated).

Variable compensation

As with any insurance contract, special attention must be paid to the terms of deductible, waiting period and ceiling. The duration of compensation by the insurance is also necessarily limited in time (six months, one year or two years depending on the offers). Some unemployment insurance contracts for a home loan, for example, impose a deductible up to six months from the dismissal. During this period, it will therefore be up to you to assume your monthly credit payments. Expensive and unattractive, this insurance is also rarely used by borrowers.

As for the simple job loss insurance, it is aimed more at the wealthiest assets who need a boost before bouncing back.

Recall that unemployment benefits average 79% of the amount of low wages, against a rate of around 64% when the job seeker earned more than 3,000 euros net per month.

Therefore, it may be interesting to take out insurance to maintain purchasing power.

At a rate of around fifteen euros per month, for example, you can obtain a monthly envelope of 600 euros for a maximum of six months, but only after having contributed for six months.

Likewise, for 26 euros of monthly contributions for at least one year, an executive may receive 500 euros in addition to his unemployment for twenty-four months.

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