For clients who have lost their jobs, sometimes unemployment benefits are not enough. Now, Assura Group of NY has created another option for those concerned about what might happen in the event of involuntary job loss.
IncomeAssure is an unemployment insurance policy that supplements state unemployment benefits. The policy replaces 50 percent of a worker's former wages — in combination with state unemployment benefits — up to $250,000. It is currently available to employees working in 34 states and the District of Columbia and is the only insurance of its kind available in the U.S.
"People's perceptions of job and financial security have been fundamentally changed by the Great Recession. IncomeAssure was designed to provide peace of mind and help workers weather job loss," said Leslie Nylund, CEO, Assura Group. "We saw a need for a solution that enables displaced workers to meet their basic short-term obligations, like household expenses, tuition costs, or mortgage payments, without wiping out their savings or investments."
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IncomeAssure claims are coordinated with state unemployment benefits. An approved state unemployment benefit claim triggers eligibility for IncomeAssure payments for policyholders. Premiums are based on salary, industry, and state of employment and range from approximately 0.5 percent to 2 percent of wages. There is a six month waiting period for new policyholders to begin claiming benefits.
"If you've just lost a $100,000 a year job, the typical maximum state benefit of $1,600 a month doesn't even begin to cover the bills," Nylund said. "Though state unemployment systems are designed to replace 50 percent of former wages, state benefits are capped at a fixed dollar amount. So, as a result, some states do not reach the 50 percent target for workers earning $50,000 per year or more. IncomeAssure closes this gap."
IncomeAssure will soon be offered in additional states, upon approval of policy form and rate filings, and is underwritten by Great American Insurance Company, rated "A" (Excellent) by A.M. Best (as of February 14, 2011).
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