What To Do If You Suffer A Loss of Job and Income
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Job terminations and layoffs are becoming a prevalent new item due to current economic conditions. Companies that were the mainstay of American financial stability, are not in real trouble. The time is long past when a person could go to work for a company and count on working at that position with that company until he or she retired.
Every day there are more headlines depicting more job terminations and layoffs. A very big problem occurs when, once one is terminated from a job, time must be taken to look for a new position. In the pursuit of a new job, it is always best to approach the effort on a full time basis. Your resume must be updated, you have to call for interviews, follow up, search for positions in your field, etc. All the while you still must meet your monthly obligations in order to maintain your lifestyle and protect your credit.
One strategy is to purchase a job loss insurance protection policy. Up to this point, this type of protection in the United States was only available through a mortgage company when you purchased your mortgage. Now this type of plan can be purchased on an idividual, stand alone basis. Benefits can be paid up to $1,500 per month for a period of 4 months. The benefit can be received in addition to regular state unemployment benefits.
There are certain restrictions that must be met such as a four month, “active at work” clause, and you have to have been terminated for more than 30 days before benefits can begin. Also, you must be a W-2 employee, not self-employed. Even so, this plan is a necessary component in any financial forecast. The funds can be used for any purpose that is necessary, such as mortgage payments, bills, car payments, groceries, etc.
Note the following statistics:
- The average length of unemployment in the United States is 16.5 weeks, according to the US Labor Department and Training Administration. Also, according to government statistics.
- The chances of a person becoming unemployed during his or her working lifetime is 90%.
- The average weekly benefit from State Unemployment Agencies totals only $299, while the benefit for most familes amounts to 2 to 4 times that much. 38% of Loan Delinquencies and Home Foreclosures are caused by unemployment, according to a 2007 government study.
It really doesn’t matter what firm you work for anymore, in that we are living in such a volatile economic environment, just about anything could happen. Who could have forseen a situation where such companies as Ford, Chrysler, and General Motors would be in such financial distress? Situations such corporate downsizing, mergers, takeovers, companies going out of business, and mass layoffs are beginning to occur quite frequently, which could possibly affect you in a major way. In many cases situations come upon us from out of the blue, and we are really not aware of them until we are in the middle of the storm.
The prospect of dealing with the stress and focus of applying for new work while, at the same time, having to deal with financial turmoil, could seriously affect your attitude and demeanor while interviewing. This stopgap measure, is a must for consideration in your overall planning for your financial future.
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- Suddenly Unemployed - How To Turn A Job Loss Into A Job Improvement
- Opportunity During The Recession
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- Where To Find The Best Man For The Job In Your Company
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