Questions: Supplemental unemployment insurance?

What is supplemental unemployment insurance? What does the insurance cover? Do you know what percentage of your salary you receive?

To help you, we have gathered the most frequently asked questions on supplemental unemployment insurance. Get advice on the insurance and learn more about what it can be used for and the best way to get through a period of unemployment.

What do you need help with?

  • What is an supplemental unemployment insurance?
  • Can I buy a supplemental unemployment insurance?
  • Can I transfer my Supplemental Unemployment Insurance from another company to IDA Forsikring?

    Certainly, it is no problem at all. However, you need to cancel your previous insurance in your current company. Please remember one thing, termination of your current insurance the same day your new insurance takes effect with us is very important. This is usually the first day of the next month, and there are two reasons for this. You avoid paying two insurance policies at one time and losing the seniority you got from your previous insurance policy.

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  • How to calculate your unemployment compensation?

    The maximum you can get is 90% of your current gross salary excluding labour market contributions. Gross salary includes commission, bonuses, company car and phone.

    Example: Compensation (salary DKK 40,000)

    Salary minus Labour Market Contributions (AMBI)    DKK 36,800
    90 % of previous salary minus AMBI DKK 33,120
    Public unemployment benefits (highest rate 2019) DKK 18,866
    Insurance compensation DKK 14,254
    Recommended insurance coverage DKK 16,000
    Total  amount per month (benefits + compensation) DKK 33,120 
    Price per month DKK 306,00

     Please remember that you can deduct the insurance premium from your taxes.

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  • When does the insurance go into effect, and when does it expire?

    The insurance becomes effective on the first of the following month after Topdanmark has received your application form. The insurance expires at the end of the month where:

    • You turn 63 unless you get unemployed before that
    • You get early retirement or become eligible for flexible jobs
    • You retire from the labour market, and thus get early retirement benefits
    • Your membership with IDA expires
    • You do not pay your insurance.

    The insurance also expires if you regret your insurance application or terminate your insurance. You can regret the insurance order for up to 30 days after having received the confirmation of the insurance application. You can at any time terminate the insurance before the end of a month. Topdanmark also have the right to terminate the insurance before the end of a quarter.

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  • How long can I get insurance payments?

    You are entitled to three separate periods, each one consist of 12 consecutive months. This means that the total number of payments would not exceed 36 months. Please notice that you need to be employed for at least 12 months between the three periods as a precondition to enter a new period.

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  • When do I receive my first payment?

    Your supplemental unemployment insurance only applies six months after you took it out. You cannot be unemployed or know in advance that you are going to lose your job during this period. At the same time, you are required to be employed in your current job for 12 consecutive months (employment requirement).

    You have an excess period of one month and the supplemental unemployment insurance is paid retrospectively. This means that two months must pass from your first day as unemployed before you receive your first insurance payment.

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  • Can I get unemployment benefit at the same time?

    You are entitled to unemployment benefits at the same time as you get insurance payments. Your insurance payments will not be substracted from your unemployment benefits. It is a 'supplemental'.

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  • Are there any situations not covered by the insurance?

    There are a number of situations the supplemental unemployment insurance doesn’t cover. You:  

    • bought the insurance and knew or should have known that you would become unemployed.
    • become unemployed or are notified that you will be unemployed within the first six months after taking out the insurance.
    • you accept voluntary redundancy – unless you have a valid reason according to unemployment legislation.
    • you are fired by your employer or fired due to reasons that are your fault.
    • your job comes to an end due to an apprenticeship contract or similar.
    • work in a seasonal job, where unemployment happens during set times, and you become unemployed within two years of working for your employer.
    • work on a specific project, which is expected to end within two years after the insurance came into force.
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  • Can I take out this insurance with a short-term employment?

    If your contract expires within two years, then you should not take out this insurance.

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  • How do I increase my existing supplemental unemployment insurance?

    If you already have supplemental unemployment insurance, but want to increase your insurance total, please send an e-mail to Topdanmark with the following information:

    • Your name
    • Policy no. (or social security no.)
    • How much your insurance benefit should be increase by

    New qualifying period of six month
    Please note that a new qualifying period of six months applies to any increase. So if you increase your insurance benefit from 28 000 kr. to DKK 30,000, there is a new qualifying period for the DKK 2,000 increase.

    Has your question been answered?
  • Can I tax deduct my insurance?

    The answer is yes, part of the insurance premium is deductible. Topdanmark - our partner with this product - sends a notification to SKAT. You do not need to take action in this matter.

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  • Can my spouse/cohabiting partner buy the insurance?

    Yes, we offer a unique opportunity to IDA members' spouses and cohabiting partners. They can share your peace of mind by taking out supplemental unemployment insurance. However, it requires that you and your partner already have one or more insurance policies with us.

    Has your question been answered?
  • Are there any situations not covered by the insurance?

    There are a number of situations the supplemental unemployment insurance doesn’t cover. You:  

    • bought the insurance and knew or should have known that you would become unemployed.
    • become unemployed or are notified that you will be unemployed within the first six months after taking out the insurance.
    • you accept voluntary redundancy – unless you have a valid reason according to unemployment legislation.
    • you are fired by your employer or fired due to reasons that are your fault.
    • your job comes to an end due to an apprenticeship contract or similar.
    • work in a seasonal job, where unemployment happens during set times, and you become unemployed within two years of working for your employer.
    • work on a specific project, which is expected to end within two years after the insurance came into force.
    Has your question been answered?
  • Can I take out this insurance with a short-term employment?

    If your contract expires within two years, then you should not take out this insurance.

    Has your question been answered?
  • How do I increase my existing supplemental unemployment insurance?

    If you already have supplemental unemployment insurance, but want to increase your insurance total, please send an e-mail to Topdanmark with the following information:

    • Your name
    • Policy no. (or social security no.)
    • How much your insurance benefit should be increase by

    New qualifying period of six month
    Please note that a new qualifying period of six months applies to any increase. So if you increase your insurance benefit from 28 000 kr. to DKK 30,000, there is a new qualifying period for the DKK 2,000 increase.

    Has your question been answered?
  • How to calculate your unemployment compensation?

    The maximum you can get is 90% of your current gross salary excluding labour market contributions. Gross salary includes commission, bonuses, company car and phone.

    Example: Compensation (salary DKK 40,000)

    Salary minus Labour Market Contributions (AMBI)    DKK 36,800
    90 % of previous salary minus AMBI DKK 33,120
    Public unemployment benefits (highest rate 2019) DKK 18,866
    Insurance compensation DKK 14,254
    Recommended insurance coverage DKK 16,000
    Total  amount per month (benefits + compensation) DKK 33,120 
    Price per month DKK 306,00

     Please remember that you can deduct the insurance premium from your taxes.

    Has your question been answered?
  • How long can I get insurance payments?

    You are entitled to three separate periods, each one consist of 12 consecutive months. This means that the total number of payments would not exceed 36 months. Please notice that you need to be employed for at least 12 months between the three periods as a precondition to enter a new period.

    Has your question been answered?
  • Can I get unemployment benefit at the same time?

    You are entitled to unemployment benefits at the same time as you get insurance payments. Your insurance payments will not be substracted from your unemployment benefits. It is a 'supplemental'.

    Has your question been answered?