Income Insurance?
Hello! I came across something interesting two years ago in Germany—an insurance policy designed to cover the difference between an individual’s salary and the unemployment benefits they would receive if laid off. To put it simply, in Germany, unemployment benefits typically range from 60-67%, depending on various factors. This insurance would cover the remaining amount, bringing the total back up to 100% for a specified duration (usually between 12 to 24 months). Has anyone else heard of this type of insurance?
Thank you!
Hi! Yes, what you’re describing sounds like a form of income protection insurance, specifically designed for situations where someone may lose their job and receive unemployment benefits that are lower than their previous salary. This type of coverage can help bridge the gap between what you were earning and what you receive while unemployed, which can be especially helpful for managing expenses.
In Germany, these products can sometimes be marketed as income gap insurance or similar terms. It’s a great option for individuals who want to ensure financial stability in case of unexpected job loss. Before purchasing such insurance, it’s essential to carefully review the terms, coverage limits, and any waiting periods to fully understand how it would work in the event of a layoff.
If you’re considering this insurance, make sure to compare different providers to find the one that best fits your needs. Hope this helps!