Private Unemployment Insurance

Discussion in 'General Insurance Agent Discussions' started by Third Joker, Apr 1, 2009.

  1. Third Joker
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    Third Joker Well-Known Member

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    Does anyone know anything about private unemployment insurance? I had someone ask me about this and honestly I didn't even know it existed. Anybody here ever sell it? Can someone point me in a direction so I can find out more about it?
     
  2. somarco
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    somarco Well-Known Member

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    There was a guy on here a few months back pushing Salary Guard.

    I had seen that product before a few years back. It never went anywhere. Still don't see it as something folks should purchase.

    Not sure if this is what you are looking for. You decide if it is worth it or not.
     
  3. moonlightandmargaritas
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    moonlightandmargaritas Well-Known Member

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    I heard that unfortunately he got laid-off...
     
  4. SalemInsuranceGuy
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    SalemInsuranceGuy Well-Known Member

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    Interesting. I never knew this existed. I see the benefit is limited to 4 months at $1500 a month and costs $69.95 a month. So the company is only on the hook for a $6000 benefit max. I think saving up an emergency fund is a much better idea. Although I'm sure some people would buy this.
     
  5. SalemInsuranceGuy
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    SalemInsuranceGuy Well-Known Member

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    I think you're right. His site is down and this is what I found on the corporate web site:

    We are no longer enrolling members into the Paycheck Guardian Plan


    Existing members can continue membership by continuing to pay monthly membership fees

    I guess that didn't quite work out the way they planned. :err:
     
  6. somarco
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    somarco Well-Known Member

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    The site has closed since I originally posted. It was active at that time.

    There was a small carrier fronting the product. Can't recall the name but could do a search on this forum if I really cared.

    The product was pricey. His version as well as the one I saw maybe 5 yrs ago. The payout was tied to being approved for unemployment compensation.

    Good concept on paper. Not so good from a practical standpoint. Too many negatives.

    As I recall, the salary guard guy had quit his job to push this to some banking contacts. I assume he had a plan B . . .
     
  7. Paul Rozenberg
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    Paul Rozenberg New Member

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    IncomeAssure, launched in 2011, offers an insurance policy that extends state unemployment insurance to cover up to 50% of your salary. You can get information about premiums on the IncomeAssure's website, but it typically costs between 0.5% and 1.0% of your income per year.
     
  8. redsquash
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    redsquash Well-Known Member

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    Thanks for bumping a 2 years old post :-)

    I think this is an interesting concept. Although the benefits are paid for only 24 weeks. For a person making 150k/year, the max benefit would be 24k* - and he will pay $3k in annual premium.

    Doesn't sound very promising to me, but I'm sure some people might think its a good deal.

    * Benefits are not 50% of salary, they are only the difference between 50% of salary and state benefits.
     
    Last edited: Aug 18, 2011
  9. Focus LTC
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    Focus LTC Well-Known Member

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    Private Unemployment Insurance = Personal Savings.

    The free market can't support such a concept.

    Any "insurance" will fail because of the very high likelihood of moral hazard.

    End of discussion.
     
  10. jodieB
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    jodieB Well-Known Member

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    Very interest concept and if the logistic of it was better rather then the 6k maximum pay out then it may work for instance. Have the premium to individual member. Pay at least 12 months of the rent they have been receiving for the past 12 months from there job and if they had the policy for an x amount of time to benefit the insurer. Think it could be a good seller in this uneconomic downturn.
     

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