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Job loss leads to both financial and mental stress. In such situations, it is always advised to buy a job loss insurance cover to mitigate the impact.
The scope of job insurance policy in India is limited. There are add-ons like job loss add-ons available in the market but most of the time they are not useful as they do not adequately cover the losses.
At HDFC Ergo General Insurance, Sarv Suraksha Plus is an insurance plan which covers loss of income. This plan addresses employment termination and covers loss of income due to major medical illness.
Eligibility for such policies might differ. For Sarv Suraksha Plus, a candidate claiming has to be employed in India and the benefit will be payable after the termination of the insured from employment till the reinstatement of employment with the same or new employer or expiry of the policy period.
Some exclusions include claims based on termination or resignation due to fraud, dishonesty, poor performance, etc. The claim will be accepted only if the period of termination or resignation is more than 30 consecutive days.
In India, job loss insurance is available to the loan customers.
According to experts, it is wiser to create a contingency fund of at least three months of EMI than to take a job insurance policy.
Compiled by Syed Muskan