Involuntary Unemployment Insurance (IUI) is a type of supplemental homeowners insurance that protects borrowers who are not self-employed against the risk of unemployment. Specifically, it preserves their ability to pay their loan installments or debts while they are unemployed. Often involuntary unemployment insurance is packaged with a loan, or offered as an extra rider on an insurance policy.
There are many causes of involuntary unemployment, but to be classified as “involuntary,” the loss of employment cannot be due to employee misconduct or due to seasonality of the employer’s business (such as a school teacher during Summer recess, or a ski instructor in the off-season). Some of the more common causes include: unemployment due to an individual or mass layoff, a general strike, termination by your employer without cause, a unionized labor dispute, or a lockout. Whatever the cause is, involuntary unemployment can create a severe hardship for you and your … Read the rest