Income Insurance Inquiry
Hello! I came across an income insurance option in Germany about two years ago, which covers the difference between an individual’s actual salary and the unemployment benefits they receive if they lose their job. For example, in Germany, unemployment benefits typically cover 60-67% of your previous income, depending on various factors. This insurance would pay the remaining amount up to 100% for a limited period (usually between 12 to 24 months). Has anyone heard of this type of insurance before?
Thank you!
Yes, income insurance, often referred to as “income protection insurance” or “unemployment gap insurance,” is designed to provide financial support for individuals who find themselves unemployed. In the context of Germany, this type of insurance can be particularly appealing for those concerned about the potential shortfall between what they earn and what they might receive from unemployment benefits.
The insurance typically covers the difference between the unemployment benefits and your previous salary, helping to ensure that you maintain a more comfortable standard of living while you look for a new job. The coverage duration, like the 12-24 months you mentioned, can vary depending on the policy.
While this type of insurance isn’t as commonly discussed as health or life insurance, it can be a good option for those looking to safeguard their financial stability. If you’re considering it, be sure to read the terms carefully and understand what is covered, as well as any exclusions or waiting periods. It may also be helpful to consult with a financial advisor to see if it fits your personal situation.