In a gloomy economic context marked by an incessant increase in the unemployment rate, the interest of subscribing to a job loss guarantee sounds obvious. Through this offer, the insurer undertakes to repay the loan in place of the borrower, until the latter finds a more stable professional situation.
Borrower insurance generally includes death and disability cover which covers death, total temporary incapacity, total and irreversible loss of autonomy and permanent or partial disability. However, to this base of basic guarantees, it is possible to add a job loss guarantee. As its title suggests, its role is to repay the loan by replacing the borrower if the latter loses his job and no longer has sufficient financial capacity to honor his debt. The job loss guarantee comes into effect only when the employee has been dismissed by his employer. It is not valid in the context of dismissal for serious misconduct, contractual termination, resignation, trial period, seasonal or partial unemployment or early retirement. .
Its cost is very variable and depends mainly on the profession of the borrower, the salary received and his age. Generally, the premium represents between 0.10% to 0.60% of the capital borrowed. So, if a 30-year-old person takes out a mortgage worth 200,000 euros and gets a rate of 0.40% on his job loss guarantee, the cover will cost him a total of 16,000 euros. Important point to know:compensation by the insurer is not immediate because of a waiting period that can range from 6 to 12 months depending on the contract. The existence of a grace period also remains possible, which ranges from three to nine months. During this period, no reimbursement is made by the insurer after the dismissal.
The conditions for obtaining a job loss guarantee are relatively restrictive and only people meeting certain eligibility criteria can claim it. Already, you should know that the offer is only available to employees with a permanent contract in their company. Farmers, craftsmen, self-employed workers, liberal professions, fixed-term or temporary employees as well as traders are often excluded from the system. Insurance companies also require seniority before awarding a contract. Preferably, it should be six months to a year minimum. In addition, there is an age limit for subscription that must be respected. This ranges from 55 to 65 years old. Finally, to claim unemployment insurance, the insured must provide proof of membership in an unemployment insurance scheme such as ASSEDIC or others.
The amount of compensation for the job loss guarantee depends on one insurer to another. But overall, it is rare for the contract to cover all the monthly payments. Support can range from 30 to 80% of the cost of installments. Sometimes the insured has the right to choose the percentage of compensation himself, but in return he must expect to pay high premiums. In addition, the amount of compensation can also be progressive or fixed. If it is a progressive amount, the insurer compensates 50% for the first six months, then increases the rate to 70% over the following two years and to 80% over the rest of the reimbursement period. Another important point to know:a ceiling is set on the cost of the allowance and can for example be 1000 euros per month. Please note that the job loss guarantee is limited in time. It is usually valid between 36 and 48 months.
