Involuntary Unemployment

This is a brief summary of the involuntary unemployment coverage provided under policy rider forms WP IU EE 001 1223 and WP IU IC 001 1223. See Policy for complete details.  Some states vary. 

 

WHAT’S COVERED? 

When the Insured becomes Involuntarily Unemployed, benefits as shown on the Schedule Page will be payable as follows: 

  • The Insured must: 
    1. be Involuntarily Unemployed, and 
    2. remain Involuntarily Unemployed for the duration of the Waiting Period, as shown on the Schedule Page.  A Waiting Period (retroactive or non-retroactive to the date you became involuntarily unemployed) may apply before benefits begin; and 
    3. be approved for and receiving state unemployment benefits. 
  • Benefits for Involuntary Unemployment will stop when the Monthly Insurance Benefit Amount has been paid for the entire Maximum Benefit Period or Lifetime Aggregate Maximum Benefit shown in the Schedule Page or, if earlier, on the date the Insured is no longer Involuntarily Unemployed, 
  • Involuntary Unemployment benefits will be reduced as necessary so that Involuntary Unemployment benefits plus all government and/or private unemployment benefits do not exceed the salary, wages or employment income from employment held immediately prior to the incurred date of a qualifying event from the occupation shown in the application.  

If the Insured incurs a qualifying Disability event and a qualifying Involuntary Unemployment event simultaneously, only one benefit will be paid, and it will be the larger of the two benefits amounts. 

  

WHAT’S NOT COVERED?  

Involuntary Unemployment benefits are not payable in these circumstances:  

  • For a seasonal worker, meaning a person whose occupation can be carried on only during certain seasons or defined portions of the year and where the customary period of employment is less than one thousand (1,000) hours during the calendar year; 
  • Occurring in the Involuntary Unemployment Insurance Vesting Period as shown on the Schedule Page. During the Involuntary Unemployment Insurance Vesting Period, at the Insured’s option following the denial of a claim, the Involuntary Unemployment coverage can be cancelled for a full refund of premium;  
  • Due to termination as a result of cause or willful misconduct (a transgression of some established and definite rule of action, a forbidden act or omission, or an act or omission involving dishonesty, or a dereliction of duty, active or passive, which is willful in character and beyond simple negligence), excessive absenteeism or tardiness, or criminal misconduct (unlawful behavior as determined by Local, State or Federal law); resulting directly or indirectly from any dishonest, fraudulent or criminal act; due to a circumstance known by the Insured prior to the Policy Effective Date;   
  • Due to war or any act of war (declared or undeclared); 
  • For an Employee: due to a voluntary forfeiture of salary, wages or employment income; 
  • For an Employee or Independent Contractor: due to a voluntary resignation or retirement; 
  • For a Self-Employed individual: voluntary resignation or divestiture of business interest; 
  • For an Independent Contractor or Self-Employed individual:  due to a voluntary forfeiture of salary, wages, employment income or independent contracting income; 
  • For an Independent Contractor or Self-Employed individual:  due to the contractual expiration of an employment or engagement contract.  
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