Life insurance is one of the most popular products offered by insurance companies. Find out if buying such a policy can protect you if you lose your job.

Not all insurance products available on the market are of the same interest. MTPL insurance is mandatory and known to all drivers, while life insurance is the focus of attention for customers seeking a mortgage loan - often only when they take out a loan do they get basic information about these products. Many are surprised that life insurance can not only provide financial security for their loved ones, but also allows them to accumulate savings or facilitate the start of adulthood for children.

You want to buy life insurance? So far you haven't been interested in such products? You may therefore wonder if its purchase will also protect you from losing your job.

Basic life insurance functions

The primary function of life insurance is the protective function. If you have a policy, you can protect your loved ones in the event of your death and the insurer will pay out the money to them. In order for the policy to really protect your loved ones, it is necessary to pay special attention to the sum insured. As far as unemployment insurance is concerned, it also has a protective function. However, since this policy is subject to a number of conditions by insurers, it is not very popular in practice.

Are you trying to get a mortgage? So you have to buy a life insurance policy. It is very likely that the bank, in order to protect its interests, will require you to purchase an additional insurance policy in the form of unemployment insurance. However, before you sign a contract, check when you will be able to use it - you should read the GTC (General Insurance Terms and Conditions) carefully.

When will you be able to benefit from unemployment insurance?

Depending on the insurance company, the insurance will be activated when:

• the termination of the contract is due to the fault of the employer;
• the contract was terminated by mutual agreement of the parties, but at the same time it was terminated in connection with group redundancies in the workplace;
• the employee has no means of subsistence, i.e. there is no additional source of income.

Most insurance companies require that at the time of termination of the employment contract the client works for the company for a certain period of time, e.g. 6 months.

Job loss insurance - what do you need to remember?

If you manage to meet all the conditions set by the insurer and you have the right to exercise the option, you must be aware of the time limit. Insurance companies most often pay out the funds from such an insurance policy for 12 months. It's a long time to find new employment, but what you need to keep in mind is that the benefit you receive may not be enough to cover all your obligations.

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