This is the year that has been talked about since the last quarter of 2015. We have finally crossed over. Many companies faced with the harsh realities of the new year might decide to cut costs by letting staff go. That is why you have to do all in your power to protect your job this year. Ensure you do not play with your job, go extra mile to do your job, develop a new attitude to your job and be more focused. Let your boss notice the new attitude towards your job and more importantly take insurance.

Do you know that with an adequate insurance policy you can protect your job? How? Read the questions below to find out.

What type of insurance policy do I need to protect my job?

Loss of Employment Insurance Policy is what you need. This policy indemnifies you as a result of ‘accidental loss of job.’ It provides predetermined monthly income for a given period to a policyholder. Loss of Employment cover is used in many countries like United States, Canada and so on. The good news here is that, this policy is now available in Nigeria.

 

What is covered by the policy?

The policy covers the policyholder against ‘accidental’ loss of job. The key word is accidental – this means that the loss of job should not be the doing of the policyholder. In essence it means that the job loss must not be his fault.

 

Who is covered by the policy?

This policy as at press time only covers the following persons:

  • Employees under a permanent contract of employment
  • Employees in the banking, oil and gas, manufacturing industries among others.
  • Employees earning a prescribed minimum salary from time to time

 

What are the advantages of the policy?

  • Protection against financial loss
  • Security of children’s education
  • Prevention of frustration
  • Psychological breakdown
  • Peace of mind and so on

 

What are the features of the policy?

The Loss of Employment Policy is made up of four benefits that a policyholder can enjoy.

Scaled Benefit

In the event that a policyholder loses his/her job, he/she is entitled to the following graduated monthly salary for 2 years as follows:

  • 100% of his monthly salary for the first 6 months
  • 75% of his monthly salary for the next 6 months
  • 50% of his monthly salary for the next 6 months
  • 25% of his monthly salary for the last 6 months

These benefits are payable for 2 years and terminates once he/she secures another job.

 

Supplementary Benefit

When a policyholder loses his job and peradventure secured another job with a lower salary, what the policy will do is to provide the shortfall in salary to him/her (a way of indemnifying the holder i.e. placing him in the position he enjoys before the loss).

 

Single Sum Benefit

In the event of a job loss, a policyholder has the option of applying for a Single Sum Benefit instead of the scaled benefit mentioned above.

 

Death Benefit

It might happen that a policyholder dies during the currency of a policy, what the policy will do is to pay his named beneficiaries an agreed sum assured.

 

When is a benefit payable on the policy?

A claim is said to occur when a policyholder loses his or her job accidentally i.e. not his or her fault. For example an employee who was dismissed because of fraud or lateness or any other offence is not entitled to any benefit on the scheme.

Also the employee must be on the scheme for a period not less than 12 months. Do note that if one loses his/her job before 12 months, his/her premium will be returned.

 

What is the cost of purchasing the policy?

The cost of the policy i.e. premium is determined based of individual risk profile. It is a function of age, industry, company, job profile, salary, educational qualification, sex etc. Once you supply that information your premium will be computed and communicated to you. Furthermore, premium can be paid monthly, quarterly, half-yearly or annually.

 

What other benefits are available on the policy?

Free legal services to policyholders on employee/employer relationship

Free 90 days look period i.e. you have up to 90 days to try the policy risk-free and after that you can either sign on or withdraw from it with 100% return of your money.

 

The aftermath of losing one’s job is harsh especially when one is not prepared for it – infact people do not prepare for job loss. The terminal benefit which is a lump sum is better off invested long term or used for projects rather than to run daily expenses. That is where the Loss of Employment Insurance comes in.

 

For further information about how to get this policy, leave a comment with your contact details in the box below.