The call for additional salary insurance was made by President Obama during his State of the Union address in January 2016. But most Americans are unsure about what private unemployment insurance is unless they’ve been the recipient of a state issued unemployment check.
Think about this, if you lose your job making $60 K per year, and cannot find another job right away, you may turn to our Department of Labor and file for Unemployment Compensation Benefits (UCB).
You also may think UCB will sustain the household until securing full time employment with a comparable salary.
However, you’re floored to discover that the max amount received in the state of Alabama per week is $265, which comes to a grand total of $1140 per month, and that’s before taxes.
If you were making around $60K per year, you’ll now be living on $13,680 per year, if you collect for one year. If you have a mortgage or household expenses like most Americans, you will not be able to sustain these expenses for very long.
The proposed private unemployment insurance is intended to supplement income between the UCB and whatever amount your policy allows for.
To learn more about what this is, please watch this short video.
Would you consider buying private unemployment insurance? Leave your comment for us below.