As data from insurance companies indicate, the spread of COVID-19 and related government measures are clearly reflected in the insurance market. In general, people are more interested in various insurance products in difficult life situations, and this is certain even now in times of pandemic. Statistics from the Czech Insurance Association show that the insurance sector grew by 3.6 percent year on year last year.
“In recent months, job loss insurance and insurance against incapacity or inability to work have taken center stage. Other insurance policies reflect another phenomenon today, which operates from the home environment, the so-called home office,” said Dushan Seidlo of the Broker Trust.
Job loss insurance
Insurance companies offer the option of long-term job loss insurance, and it is advisable to arrange it with a mortgage or a consumer loan. In recent months, interest in this product has increased greatly. Some insurance companies even offer up to half of the high demand growth.
“The insurance will ensure that a person will not stop paying the loan if he loses his job due to the termination or bankruptcy of the employer. In such a case, the insurance company usually pays 6 to 12 installments per month, depending on the terms of the contract,” Šídlo added.
However, insurance does not cover all situations, such as contractual termination. You will face a problem with your insurance compensation even if you know before arranging the insurance that the end of your employment is nearing. For this reason, insurance companies use a so-called waiting period, so you will not be entitled to insurance benefits until 30 or 60 days have passed.
Job incapacity insurance
Incapacity insurance is not offered by banks, but by some financial advisors.
“Through this insurance, it is possible to insure the insured’s income lost as a result of temporary or permanent disability to work in a particular profession due to an accident or illness,” ídlo specified.
As I further explain, this is not a classic disability insurance, as the client cannot perform any work. Thus, this product is suitable, for example, for the self-employed (self-employed): for example, well-paid doctors, dentists, musicians, other artists, high-level managers, pilots or professional athletes. However, the insurance is also arranged by well-paid craftsmen, teachers and chefs.
Professional income insurance is not cheap insurance, which is understandable given the risks the insurance company assumes. A relatively minor health problem can also lead to an occupational disability, which does not necessarily end with disability from the state.
Šídlo recommended that “in the event that a person has an accident or illness, a very limited opportunity to make money in any form, classic life or disability insurance is appropriate”.
Inability to secure work
If you take out disability insurance, the insurance company will pay you the agreed amount for each day of inability to work from your fifteenth day. Insurance can be arranged by both the employees and the self-employed.
In addition to this commercial insurance, entrepreneurs should also consider arranging voluntary health insurance from the state. If they do not pay, they lose both the sickness benefit if they are unable to work due to an accident or illness, and any maternity or paternity benefit.
“A neglected and neglected benefit is that during the sickness benefit withdrawal period, the self-employed are exempt from paying social and health insurance advances (only for the whole months that the event lasted). The appropriate solution is to combine government and commercial insurance.
Insurance when working from home
Currently, many employees work in the so-called home office, that is, they do their work from home. Often times, they secure their liability to the employer, which is helpful, for example, with the means of work used, usually computers or work phones.
Some employers, in turn, arrange accident insurance for their home office workers. “Although it may seem contradictory, it is a logical step. Many employees work from home, where, by the way, most accidents happen, and if they are injured during working hours, the accident can be classified as an accident at work,” Šídlo added.
Do you have insurance against the risks associated with loss of income?
I bought it because of a pandemic.
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