Job Loss Protection-IUI

Overview

With unemployment rates rising in many states lenders, builders, automobile makers, cell phone companies and many other entities providing services to the American people are becoming more and more concerned about decreases in sales. These entities are also concerned that if more people become unemployed, they won’t be able to make their monthly payments on their mortgage, car loan, cell phone service and/or utilities.  This benefit provides payments of these monthly bills should you become involuntarily unemployed.

With unemployment rates rising in many states lenders, builders, automobile makers, cell phone companies and many other entities providing services to the American people are becoming more and more concerned about decreases in sales. These entities are also concerned that if more people become unemployed, they won’t be able to make their monthly payments on their mortgage, car loan, cell phone service and/or utilities.
 
To hopefully prevent non-payment of these items to occur because of unemployment, many lenders, landlords, builders, automobile makers, cell phone service providers, utility companies, and credit car providers include involuntary unemployment coverage to their customer at no cost.  The entity doesn’t want their potential customer to pass up a purchase because he/she is uncertain about future employment, so they include the unemployment coverage with their product (mortgage, loan, service, etc.) as a marketing tool.
 
In addition, if the consumer does make the purchase and loses his/her job five or six months down the road, this coverage makes the monthly payment for up to six (6) months. As a result, the entity providing the coverage is prevented from losing revenue and their customer is prevented from losing a home, car or service.
 
The coverage described above is a blanket involuntary unemployment program. It gets this name because the coverage is provided (“blanketed”) on every car sold, home sold, every loan closed, every cell phone sold, etc. From an insurance company’s standpoint, this approach not only generates more premium, but also reduces the adverse selection factor of the coverage only being purchased by individuals who know they are becoming involuntarily unemployed (laid off)).
 
The involuntary unemployment coverage can provide coverage for up to five (5) years and usually makes a maximum of six (6) monthly payments. The coverage also includes a sixty (60) day vesting period and a thirty (30) day waiting period. Depending on the item covered (utility bill, cell phone bill, mortgage payment, car loan payment) the monthly payment usually ranges from $100 to $2,500 per month. Pricing is determined by length of coverage, number of monthly payments, dollar amount of each payment and the item the coverage is included with.
 
Blanket Involuntary Unemployment Insurance is both an excellent marketing tool and an efficient loss mitigation tool that becomes very much in demand when the economy slows and unemployment rates are on the rise.

Description

Eligibility 
a)    18 to 66 years of age
b)    Employed full time(minimum 30 hours/week) at time of purchase
c)    Cannot be self-employed
d)    Must reside in US

Conditions  
a)   Unemployment must commence during coverage period
b)   Insured must report mortgage closings on a monthly basis
c)   Coverage is limited to payments due 30 days after unemployment                   
d)   Claimant must qualify for state unemployment benefits
e)   Claims payments cease immediately upon re-employment
f)    In the event of subsequent unemployment, a new 30 day Waiting Period applies.
g)   Coverage for both co-borrowers.

Exclusions  
a)    Voluntary unemployment
b)    Disability or medical (mental or physical)
c)    Reasons listed for denial of unemployment benefits
d)    Borrowers that are self-employed or are aware of a pending lay-off
e)    Strike/Lockout

How To File a Claim