Suffered a Loss of Income? Here Are 4 Services That Can Help
Loss of Income
Everyone has a major source of income, but few people have multiple sources of income coming in at once.
You can experience a loss of income at any time if you experience a severe injury or illness. Other reasons could be retirement or leave of absence.
When you’ve lost your income, consider the following four services provided by the government or organizations to help you recover your losses.
Unemployment Insurance
Unemployment insurance (UI) is provided to employees who become unemployed due to layoffs or terminations that are not their own fault.
Unemployment insurance is a temporary solution that is less than the amount they earn regularly and lasts for several months up to a year.
Unemployed workers must qualify by earning a certain amount of income, and they must continuously look for work while receiving benefits.
Workers’ Compensation
Your employer may or may not be required to follow a workers compensation law that covers the expenses of your accident and injury.
The first rule is that your injury must have occurred while you were working.
If you qualify for benefits under the law, you receive fast compensation instead of having to file a lawsuit that takes a longer time to settle in or out of court.
Disability Insurance
An injury or illness, whether it’s work related or not, may cause a disability that requires the payment of medical bills, lost wages, relocation fees, and increased living expenses.
Short-term disability insurance is designed to cover expenses for up to six months. Long-term disability insurance lasts for several years after the short-term benefit period ends.
Retirement Savings
Borrowing from a line of credit is not recommended when you have lost a regular income.
When you borrow a loan or credit, it collects interest that must be repaid in full. It may be more suitable to withdraw cash from a retirement savings account, which you can do for an emergency.
There are fees up to 10% to cash out a 401K retirement plan before you reach a certain age.
This money may need to be repaid at some point, so review the tax rules before making a withdrawal.
Finding a single source of income is hard enough, and it’s even harder to find an additional one.
When you have no other way of paying off your life’s expenses, it’s time to file a claim or dip into an emergency savings account.
Four social services are available to workers who have a loss of income and for whatever reason.
Category: Personal Finance
