Private unemployment insurance?

speedyg

New Member
1
I am employed full-time and am (practically) the sole breadwinner for my family.

If I was laid off tomorrow, I could count on state unemployment but my own nest egg has been depleted through various misfortunes, and it will be some time before it's built up again to a point where I could weather a season of being on the street. Realistically, if I was laid off, it could take 4-6 months to find a new job, and there's no guarantee that I wouldn't have to relocate. I do have a substantial 401K but of course, it'd be hideous to tap that.

There's state unemployment, but that of course is a joke. I googled a bit for private unemployment insurance, but I found that IncomeAssure no longer accepts new customers, and SafetyNet is not available in my state.

Are there other options?

I'm 50 and in Oregon.
 
Find an independent agent who has access to the Excess and Surplus Lines markets. This is likely a high risk coverage, especially due to your age and the type of work that could take you 4 to 6 months to find another job. My guess is that the cost of the insurance will be prohibitive.
 
Secure a home equity line of credit before you're laid off. Use the advances from the line of credit to make payments back to the line of credit until your cash flow improves.

Cash value life insurance is another way to go where you can borrow against the cash values without a credit check. Of course, the policy would need to be properly funded and have accessible cash values.

 
Some mortgage protection insurance plans might cover income loss due to involuntary job loss. Like mentioned above you would want to consult with a licensed agent to explore your options and costs for this type of protection.

Can I Buy Insurance to Cover My Mortgage If I'm Laid Off?

You’re right about state unemployment benefits. Me personally I’d only use that as extreme desperate last resort. You have to go through quite a bit of hoops to get it and Here you only get about 1/3 of your weekly former income and the max is like $300/week.
 
There are also various hardship provisions to help you access your 401(k), if necessary. Sometimes, you just gotta do what you gotta do.

Btw, think about this: If it takes you 6 months to get a job, and you pull out 6 months of income from your 401(k), it's taxed the same. Sure, you may get hit with a 10% penalty, but it's still regular taxable income (aside from FICA).

Retirement Plans FAQs regarding Hardship Distributions | Internal Revenue Service
 
Some mortgage protection insurance plans might cover income loss due to involuntary job loss.

I haven't seen anything like that. What I've seen is that your payments on your policies could be waived for up to 6 months in the event of involuntary job loss. Waiving premiums is helpful, but it's not cash in your pocket.

I could be wrong.

EDIT: This could be a kind of "credit" insurance available from your lender.
 
Also start a savings or investment fund now while things are going in your favor.

Are you check to check or do you have some disposable income to stash for rainy days?
 
I haven't seen anything like that. What I've seen is that your payments on your policies could be waived for up to 6 months in the event of involuntary job loss. Waiving premiums is helpful, but it's not cash in your pocket.

I could be wrong.

EDIT: This could be a kind of "credit" insurance available from your lender.

Just happened to find the lead flyer that offers 'unemployment benefit' - it offers to pay the premium only in case of job loss

noted...

the wording on this flyer caught me up
 
Secure a home equity line of credit before you're laid off. Use the advances from the line of credit to make payments back to the line of credit until your cash flow improves.

Cash value life insurance is another way to go where you can borrow against the cash values without a credit check. Of course, the policy would need to be properly funded and have accessible cash values.



Interesting video!
 
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