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What Is Private Unemployment Insurance and Why Do You Need It?

Unemployed man

Imagine for a moment you get the dreaded news: you’ve been laid off. What goes through your mind first? How long can you go without an income before you can no longer make that car payment? Will your state-sponsored unemployment insurance be enough to keep you afloat? How long will it take to kick in? Are you even eligible? Which grocery stores accept credit cards?!

Now sit back and imagine that same scenario but with someone handing you a few thousand dollars to help you get through this tough time. For people with private unemployment insurance, that fantasy could be a reality.

What is private unemployment insurance? 

Private unemployment insurance (sometimes called income loss insurance or job loss insurance) can be a welcome safety net if, despite being gainfully employed, you live with financial insecurity.

In fact, that’s exactly what

that’s exactly what SafetyNet™ unemployment insurance is all about. For folks who live paycheck-to-paycheck or who do not have much savings or immediate access to their savings, it is designed to provide a financial cushion in the event of job loss while they get back on their feet.

What Makes SafetyNet Better Than Traditional Options

It’s fast and simple

Traditional unemployment insurance—offered through the government—can take several months to pay out. Given that many states froze or reduced their unemployment benefits since the Great Recession and that the percentage of jobless workers who receive unemployment insurance has been decreasing (along with the amount of time benefits are paid out on average), supplementing government unemployment protection with private insurance only makes sense.

With a simple claim process and much faster payments (usually a matter of days), SafetyNet’s supplemental unemployment insurance—purchased directly by you—can provide a quick infusion of cash in one lump sum just when you need it most.

SafetyNet is not a loan you have to pay back. The money is yours to spend as you see fit—rent, groceries, utilities, medical appointments—and there are no reports to file after the fact.

And unlike predatory lending programs that can bog you down in fine print designed to hit you with fees and high interest rates, the terms and conditions of private unemployment insurance are accessible and designed to be understandable to everyone, not just HR reps or lawyers. And the print size is actually legible!

It’s affordable

The simplicity of SafetyNet’s supplemental unemployment insurance is one of the things that makes it more affordable and attractive than typical insurance products. It’s easy to enroll and easy to submit claims. No complicated forms for bureaucrats to process. In fact, for the cost of just one meal per month, you can receive a lump sum cash payment of thousands of dollars.

Woman thinking about unemployment insurance

Why do you need private unemployment insurance? 

You’re a planner

You’ve heard you need to save up several months of expenses in the face of job loss, but that feels unrealistic when you are living paycheck-to-paycheck. Nevertheless, you are someone who doesn’t want to find themselves borrowing from friends, family or—worse—credit cards should the dreaded day arise.  Private unemployment insurance can help you stay on track when you otherwise don’t have the resources to do so.

You want to maintain the savings you do have 

Just a few months of unemployment can drain any emergency savings you do have. Even the time it takes to file for unemployment insurance can do the same. Researchers know that maintaining a financial cushion is a key to financial wellbeing. Why compromise your security when supplemental income insurance is simple and affordable?

You don’t feel like you have job security

Income insurance kicks in when the business you work for closes or your job is eliminated due to other employer-initiated layoffs. While it won’t cover quitting, retiring or a job loss you knew about before you signed up, it is there to help when life throws you a real curve ball.

You’re part of the solution

Income loss insurance was developed as a means of addressing the troubling news that Americans are increasingly unable to maintain a sufficient emergency fund. In fact, nearly half of Americans would have to pay for an unexpected expense of just $400 by selling something or going into debt.

Unlike government unemployment insurance, innovative products created in a startup environment, like SafetyNet supplemental unemployment insurance, tend to be less bureaucratic and more customer-driven.  Though backed by an established insurer, the team behind SafetyNet is dedicated to building a product that responds to what their customers tell them they need.

From the beginning, the creators of SafetyNet unemployment insurance, for example, said they counted on “the power of consumers to demand insurance products that are designed to solve their problems.” What they heard was that consumers wanted were simple processes and a lump-sum payout they can manage on their own. With a completely online interface, simple claims process and automatic monthly deductions from your bank account, SafetyNet is designed to do just that: give you one less thing to think about—until you need it.

When you choose to do your part in staying out of debt, you are joining an innovative financial movement designed to return Americans to financial security and stability.

No one likes to imagine the day their income is suddenly cut off. With private unemployment insurance like SafetyNet, however, that image can seem much more manageable.