Cost Unemployment insurance for loan
According to the insurance companies, the cost of unemployment insurance is calculated either on the amount of capital borrowed or on the amount of loan repayment payments.
Based on the amount of capital borrowed, the cost of unemployment insurance can range from 0.09% to 0.65% per year of this amount, depending on the percentage of compensation.
Based on the amount of monthly loan repayments, it can vary from 1% to 1.4% of these monthly payments.
To summarize all the formulas that are offered by banks or other financial institutions.
The duration of compensation for the same period of unemployment shall not exceed 36 months and the maximum duration of accumulated unemployment shall not exceed 72 months.
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Unemployment insurance: the questions / answers
Is it mandatory?
You do not have to take out unemployment insurance. However, some lenders may ask you to do so, otherwise you will not be granted credit. The conditions and cost of unemployment insurance may vary from one organization to another.
What are the conditions of membership?
To buy a job loss insurance, you must comply with the following conditions:
- Subscribe to death and disability insurance
- Work as an employee on an Undated Contract
- Justify a minimum seniority in the company (from 6 to 12 months)
- Not to be on probation, resigning from the company and no notice of dismissal
- To benefit from unemployment benefits of ASSEDIC (or similar organization)
- Be under age 55, 57 or 60 (depending on the contract) at the time of signing the contract
What is the waiting period?
The waiting period corresponds to a period of 6, 9 or 12 months which starts at the signing of the contract and during which the guarantee can not apply: in the event of loss of employment, no compensation is paid by the employer. ‘insurer.
What is the franchise time?
The grace period is the period, usually 90 days, that must elapse before the insurer will compensate you. It starts when you receive your first ASSEDIC compensation.
What is the method of compensation?
The method of compensation may vary by insurer and may be:
- Total or partial assumption of monthly loan payments
- A postponement of monthly payments in fine loan
What is the duration of compensation?
The duration of compensation may also vary between insurers. It can be between 18 and 48 months. And in case of periods of unemployment repeating itself, it spreads between 36 and 72 months.