Get job loss insurance as you plan your 2017

The economic situation is becoming tougher by the day, and organizations are closing shop with a lot of job losses. With benefit of hindsight that this may not be over so soon given the economic recession, there are fears that many more people may still lose job.

While figures from the Nigeria Bureau of Statistics (NBS) further reveal a tough year for employment market, Nigeria’s unemployment rate rose for the seventh straight month to 13.9 percent in the third quarter of 2016 from 13.3 percent in the previous period.

What this means is that, many breadwinners many be thrown into the labour market, with attendant impact dropping on their families and dependants.

If you are therefore having a job today and could not be sure what tomorrow holds given the current economic realities, it might be you we are advising. Take up a job loss or unemployment insurance, so that in the event of this happening you could have a regular payment for sometime before you settle in another job or a business.

In Nigeria, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

Employment Insurance (EI) provides temporary financial assistance to unemployed people who have lost their job through no fault of their own, while they look for work or upgrade their skills.

Within the Nigerian market, operators are thinking seriously about providing succor to many who may be affected or lose their job through well thought out products.

For instance, Anchor Insurance Company Limited has a product called Loss of Employment Insurance Scheme (LoEIS).

This is coming as measure to help people who lose their job cope with financial needs pending the time the secure a new job, the Company said.

Mayowa Adeduro, managing director and CEO, Anchor Insurance said the product was born out of intensive research, market survey and test marketing locally and abroad since 2011 by Universal Risk Management And Actuarial Services Limited, an indigenous actuarial service consulting firm.

He said it relied on the competence and relationship between URMAAS Limited USA, PolySystems, Inc USA and URMAAS Limited Nigeria to make a success story from the product.

Adeduro explained that the product provides cover against sudden loss of employment income for a reasonable period of time that the victim could regain employment and flow of income resumes.

“This product provides benefit for a member who lost his employment through no fault of his. The policy will continue to provide financial cushion against income losses from temporary unemployment,”

In the event of loss of employment, he said the policy will pay the insured, the salary earned last in the employment for a period of time during which period the member may have regained another employment subject to a maximum period of 24 months.