Unforeseen systemic shocks such as the credit crunch 2007/2008 and the Covid Pandemic 2019 to 2021 can create anxious moments as consumers face the daunting prospect of having to meet committed financial repayments, at the time of ever increasing uncertainty following the loss of a job and the resultant loss of income following that job loss.

Job Loss Protection Insurance  provides a Credit Enhancement Program to the Provider of  the finance and or the underlying goods and services

Job Loss Protection Insurance  can provide a layer of protection against delinquent payments due to involuntary economic loss of employment income threatening future expenditure patterns. Depending on the underlying goods or services being protected Job Loss Protection can minimize delinquencies and provide some form of cash flow protection.

Using Job Loss Protection Insurance as a credit enhancement tool means that a Distributor can advise their customers that they will receive protection for their committed monthly repayments should they become involuntary unemployed. The period of protection will depend on the plan type and the period of cover selected.

Mandatory Job Loss Protection Insurance

Job Loss Protection Insurance  is designed to be offered to all customers forming part of a particular consumer segment. This approach to distribution affords the Underwriter with an equal mix of all risks, it also severely minimizes the possibility of adverse selection, i.e. cover only being offered to customers presenting the worst risk profile.

Enhancement of the Product Offering

Job Loss Protection Insurance protecting committed debt repayments can be very appealing to:

• Mortgage Providers
• Unsecured Lenders
• Credit Card Providers
• Motor Manufacturers
• Telecom Providers
• Energy/Utility Companies
• Motor Distributors
• House Builders
• Educational Care Product Providers
• Retailers
• Affinity Groups

Particularly as it allows the above to increase more sales of their core product offerings

Coverage can be offered to all persons who at the effective date (start date) or cover are "Gainfully Employed" and over the age of 18.

"Gainfully Employed" means full-time employment for wages, salary, or other monetary reward and working a minimum of thirty (30) hours each work-week. "Gainfully Employed" does not include self-employment income, contract hire (1099 income), barter-for-trade compensation such as room and board, or any other non-monetary payment.

Coverage Terms can vary from 12 months to 36 months, and provide from 3 to 6 months benefit any one claim. A re-qualifying period, where applicable, of twelve weeks gainful employment must be observed before a customer can reclaim under the cover.

Coverage Benefit is constructed to protect the customer's scheduled monthly account payment, and will continue until the customer is no longer involuntarily unemployed or the maximum number of payments has been paid for job loss occurrence of the State or local unemployment or government agency stops paying benefits.

At the start of cover a vesting period is applicable, which means a time period where claim occurrences made are not covered.

Protection for customer scheduled monthly account payments up to $2,000 can be considered.

Working With Clients to Deliver Brand Enhancement

Job Loss Protection Insurance provides a safety net apart from state or government assistance. When built into an existing product this can create a significant marketing edge over competitor offerings. An increased market awareness of a product enhanced by involuntary unemployment protection can lead to more sales and more profit.

Design

At Mocden we recognize that a willingness to design Job Loss Protection may be contingent on the:

• image or message an organization is trying to create regarding its brand; and
• the market segment is seeks to reach out to; and
• the available marketing budget it has and seeks to allocate per branding initiative.

It acknowledgement of some of the above factors, it is possible to vary and even reduce the level of cover if cost is an obstacle.

For further information contact:

Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276 (UK)

+1 315 359 6005 (USA - Newark)

+61 3 638 77 044 (Australia - Melbourne)

mstanden@mocden.co.uk