It happens that a person takes a loan, and after a while loses the ability to repay it. In most cases, this happens because he is experiencing financial difficulties caused by the loss of a job. The problems begin, all the plans that were built just collapse. Job loss insurance is a great way to protect against unforeseen situations.
Job loss insurance - what is it?
This type of service is that if a person has lost his job, the insurance company will be obliged to pay him the amount that he should give on average for a loan. Very convenient, you can’t even argue. Loss insurance will protect a person. Depending on which program is selected, payments will be received in full in 6 or 12 months. During this time, you can find a new job for yourself.
Insured events
Before looking for a company that offers a service such as job loss insurance, reviews are studied very carefully about each individual organization. You must be sure that you are in good hands.
It is important to note the fact that if a person independently decided to leave his place of work, then this case is not insurance. Each organization offers its own list of conditions for receiving payment, but there is a standard list that everyone adheres to.
List of insured events:
- Loss insurance will help if the organization where the person was employed was liquidated for various reasons.
- The staff is subject to reduction.
- Changed the owner of the company, which introduced its own rules.
- The contract was terminated for reasons for which neither of the parties was to blame, for example, disability or conscription.
In which cases payments will not be made
Loss insurance does not imply benefits in the following situations:
- Dismissal due to violation of the employee’s labor discipline .
- Dismissal without explanation (at will).
- Loss of performance due to the fault of the employee, for example, harm to health and non-observance of safety precautions when intoxicated.
What types of loans allow insurance
Loan loss insurance is considered a very common service today. It does not matter what type of loan a person has, he can take out insurance in any case, whether it be a consumer loan or a mortgage.
The easiest way when applying for a loan is to explain to bank employees that you want to take out this kind of insurance. This will be beneficial not only to you, but also to a financial institution. Most often, they already have signed contracts with several insurance organizations, so employees will not only advise, but also help to arrange everything.
Benefits of an Insurance Contract
The conclusion of a contract of this type will always be appropriate and useful. No one can be completely sure about tomorrow. Problems can arise when you least expect them. The company will spontaneously close, or other problems will arise. In the event that you take out insurance in case of loss of work, all this can be experienced with minimal damage.
Advantages of contract execution:
- In the event of an insured event, the loan is paid by the insurance company.
- Credit history will not be spoiled.
- You will have enough time to find a new job.
- The conclusion of such an agreement is inexpensive, but you will feel safe.
Mandatory Requirements
If a person has decided to conclude an insurance contract in case he loses his job, he must meet the following criteria:
- Have an internal passport and reach the age of majority.
- Work experience from the last place of work must be at least three months.
- The total length of service must be at least a year.
- The employee must be officially employed and have an employment contract.
Mortgage Loss Insurance
Mortgage loan - one of the most common cases of receiving insurance payments. The criteria may vary among organizations, but the essence remains the same. In the event that you lost your place of work through no fault of your own and temporarily do not have the opportunity to pay a mortgage, the insurance company with which you signed the contract will do this. Of course, you will need to submit documents, the list of which is quite extensive, but you will be completely sure that you have secured yourself.
Documents required to receive payment:
- Copy of internal passport.
- The presence of a copy of your work book, which confirms the length of service.
- A duplicate of the terminated contract in order to confirm that the employee is not guilty of deprivation of solvency.
- A certificate from the bank stating that you have a mortgage debt.
Is it necessary to insure yourself against cases of loss of solvency
Opinions differ when it comes to discussing a service such as job loss insurance. Reviews can be found both positive and negative. Some people avoid signing a contract because, in case of difficulty, they may turn to friends or relatives for help. However, such an act is impractical.
Basically, only those customers who lost their jobs due to their fault and were unable to receive insurance payments remain dissatisfied with the contract. Do not forget that this agreement is in cases where the organization closes or abruptly begin to lay off employees due to staff reductions. You can be sure that your mortgage or any other loan will be paid on time while you are looking for a new job for yourself.
The conclusion of an insurance contract in case of loss of solvency on a loan is very beneficial. Your credit history will not be damaged and you will not lose your mortgage or other property. Of course, all this only applies when your case is insured.