Involuntary Unemployment Insurance could be good news for your family. You might already have valuable credit insurance to protect yourself and your family from the financial fallout of a changing economy. If you closed a personal loan, you might have bought credit insurance and just need to know how to put it to work for you. Or, you might be considering taking out a personal loan and wondering whether insurance is a smart move. Here’s what you need to know about this valuable option.
Credit Involuntary Unemployment Insurance (IUI) makes payments on your credit obligations when you have lost your full-time job through no fault of your own. Examples of “involuntary unemployment” include a layoff, general strike, involuntary termination of employment, unionized labor dispute or a lockout. What you’re buying is peace of mind for payments on your personal loan — and safekeeping of your credit rating.
How does IUI work? IUI benefits, as long as you qualify, pay up to a pre-determined maximum number of monthly payments on your loan if you become involuntarily unemployed. You must buy the insurance in conjunction with a loan, and your originally scheduled monthly loan payment will be applied to the loan when a claim is filed. This meaningful benefit frees you up to use money from your severance pay or unemployment benefits to handle other household necessities – and eases the burden.
Do I qualify? To qualify to purchase IUI in most states, you have to be employed and working 30 hours per week. Self-employed people, including independent contractors, are not eligible to purchase coverage (in most states). You must qualify for state unemployment payments to receive this benefit (in most states). Check your eligibility here, but be sure to consult with your representative or agent about other requirements and exclusions.
I already have an IUI policy. How do I file a claim? It only takes a moment to confirm whether you bought this insurance when you closed your loan. Get in touch with your loan provider to confirm the details of an IUI policy you might already have purchased and they will provide you with an IUI Claim Form or you can find a form here.
OneMain remains committed to providing you with resources that help you make informed financial decisions. OneMain has compiled a list of government resources to help you find relief, if you have been impacted by COVID-19. Visit OMF.com/HereToHelp.