This post is sponsored by SafetyNet. Opinions are my own.
Here is how SafetyNet works:
1) You decide the optimal amount of wage insurance
SafetyNet offers four different plan options:
- You pay $5/month in premiums and receive a lump sum benefit of $1,500
- You pay $10/month in premiums and receive a lump sum benefit of $3,000
- You pay $20/month in premiums and receive a lump sum benefit of $6,000
- You pay $30/month in premiums and receive a lump sum benefit of $9,000
Within a policy year, SafetyNet will pay out one lump sum benefit for disability and one lump sum benefit for unemployment. The maximum wage insurance benefit for any person (total amount of lump sum benefits paid) through SafetyNet is $24,000.
2) You pay for coverage
Your first payment is not due for 30 days – which is also when you can first file a claim.
3) You receive coverage
SafetyNet is very clear about what is covered under their wage insurance policy.
The following events will qualify for a lump sum payment:
- Job loss due to layoff, job elimination, business closing or other employer-initiated separation not specifically excluded (see below)
- Disability – your doctor has stated that you have a medically determined sickness or accidental injury that is expected to prevent you from performing all of the essential functions of your job for at least 30 days
SafetyNet insurance exclusions are also clearly defined. Under the following events, you are not eligible to receive any payment under the insurance policy:
- Job loss or disability that occurs in the first 30 days of coverage
- Job loss or disability due to acts of war, or nuclear or natural disasters
- Normal routine downtime for seasonal and other jobs (like construction)
- Disability due to normal pregnancy, alcohol or drug use, or elective surgery
- A job loss you were told about before you bought the coverage or if you quit, retire or are fired
- A disability that starts within the first 6 months of coverage if caused by a condition you were treated for within the 6 months before you bought the coverage
These are the standard exclusions found in any insurance policy that are necessary to protect against moral hazards.
If you file a claim and receive payment, SafetyNet has specifically noted that this alone will not cause your premiums to change.
4) Decide if you want to continue coverage
SafetyNet issues one-year, nonrenewable policies.
The policy will terminate mid-year only if you reach the maximum lifetime benefit of $24,000 or you fail to pay the required monthly premiums. You can choose to end coverage at any time.
Supplemental wage insurance can provide valuable income during periods of unemployment or disability. If you have a large emergency fund set aside to cover your expenses during unemployment, you may be able to self-insure without purchasing insurance coverage.
If you don’t have money saved, consider researching and selecting a supplemental income insurance policy to protect yourself. SafetyNet offers a policy that is worth considering, featuring straightforward pricing and transparent terms and conditions. However, policies are only available in Wisconsin and Iowa at this time.
If you purchase a policy, the insurance premiums will reduce your available cash flow while you are employed, but the lump sum benefit can be a lifesaver if you are unable to continue working and require income.