All you need to know about Supplemental Unemployment Insurance
If you become unemployed, your income may significantly decrease. Supplemental unemployment insurance provides financial security. Learn more about the coverage and benefits of this insurance and when it makes sense to invest in it.
What is supplemental unemployment insurance?
Supplemental unemployment insurance is designed to provide financial assistance if you unexpectedly lose your job. When you become a member of an unemployment insurance fund, you are entitled to unemployment benefits. However, more than unemployment benefits may be needed for many people to cover their living expenses. In this situation, supplemental unemployment insurance provides an additional financial safety net to cover the costs of being involuntarily unemployed. How does supplemental unemployment insurance work?
You will receive regular monthly payments from your insurance as a salary. The amount of payment you receive depends on various factors, such as:- Your gross salary (including bonuses, commission, free car, and free telephone).
- And the coverage you have chosen. You can select a coverage amount from DKK 2,000 to 40,000.
How much of my income can I cover and receive payment for?
You can receive up to 90% of your gross salary, excluding labour market contributions. Your gross salary includes commission, bonus, a free car, and a free telephone.You have to wait two months from your first day of unemployment before receiving your first supplemental unemployment insurance payment, which is paid retrospectively.Remember, you can receive around a third of your premium in tax deductions.Example of a supplemental payment (monthly salary of DKK 40,000)
Salary deducted from labour market contributions (AMBI) | DKK 36800 |
90% of current salary minus AMBI | DKK 33120 |
Unemployment insurance fund (highest rate 2023) | DKK 19728 |
Insurance compensation | DKK 13392 |
Recommended coverage when buying | DKK13392 |
Total payout per month | DKK 33120 |
Your price for supplemental unemployment insurance per. month | DKK 258 |
Will my insurance still cover me if I switch jobs?
When you switch jobs, it's essential to remember that there should be a maximum of 14 days between your old and new jobs. Remain unemployed for more than 14 days. You will have to start over again and fulfil the requirement (employment demand) of being continuously employed for at least 12 months to become eligible for compensation.This approach means that if you switch jobs and there is no more than a 14-day gap between them, your insurance will continue to cover you in your new job (provided that you have been employed for at least 12 months before switching jobs).If you do decide to change jobs, please get in touch with Topdanmark Lønsikring on tel. +45 44 74 35 50 or update your information yourself on Min Lønsikring.Am I covered in the event of a strike or lockout?
No, supplemental unemployment insurance does not cover strikes or lockouts.However, a possible strike or lockout will not affect the waiting period and employment demand, not even if you lose your job during the strike/lockout period.What is the duration for which supplemental unemployment insurance provides coverage?
Your insurance coverage will continue until the end of the month in which one of the following events occurs:- You turn 65 years old unless you become unemployed before then.
- You are granted early retirement or transferred to a flexi-job.
- You retire from the labour market.
- Your membership in the unemployment insurance fund (A-kasse) ends.
- You don't pay the premium for the insurance.
When does the insurance policy not provide coverage?
The insurance policy will not cover you in the following situations:- You purchased the insurance knowing that you would be unemployed or could have predicted that you would become jobless.
- You become unemployed or are informed of unemployment within six months of purchasing the insurance policy.
- Under unemployment legislation, you resigned or became unemployed voluntarily without a valid reason.
- Your employer dismissed or expelled you for reasons related to your conduct.
- You left your job due to your apprenticeship contract or similar arrangements.
- You work in a seasonal occupation where unemployment is a fixed part of the job, and you become unemployed within two years of working with your employer.
- You are a project employee or hired on a fixed-term contract for less than two years.
When is it a good idea to purchase supplemental unemployment insurance?
Whether investing in this insurance is a wise decision can take time and effort. However, you can take into account the following factors:- Can you realistically survive on unemployment benefits for a prolonged period?
- Do unemployment benefits cover your monthly fixed expenses?
- Is having a stable income essential for you, or can you manage with less money if you lose your job?
- Have you been employed continuously for at least 12 months? (This is a requirement for receiving supplemental compensation from the insurance.)
Can your partner or spouse buy the insurance?
Supplemental unemployment insurance provides added security in daily life for our members' partners or spouses. However, you and your partner must have one or more insurance policies with us in advance.Can I work temporarily or part-time?
You can work part-time for up to 29.6 hours a week while receiving compensation. However, the compensation you can receive is still limited to a minimum of 90% of the salary you received before you became unemployed.If you're interested in part-time work, contact Topdanmark Lønsikring at +45 44 74 35 50. Alternatively, if your working conditions change, you can change your compensation plan by visiting Min Lønsikring.Will my insurance premium decrease if I lose my job?
While unemployed, you won't be required to pay for supplemental unemployment insurance.For instance, if you receive compensation from April 1st to May 31st, we won't charge you the premiums for April and May.The price is automatically adjusted, so you don't have to take any active steps. If you've already paid in advance, we will deduct the amount the next time we charge you.Am I allowed to claim my insurance cost as a tax deduction?
Yes, approximately a third of the insurance price is tax deductible. Our partner, Topdanmark, reports this to the Danish Tax Agency, so you do not need to do anything.Please find below the requirements for your Supplemental Unemployment Insurance
To obtain insurance from IDA Forsikring, you must first be a member between 18 and 60. However, you must purchase and accept the insurance before you reach the age of 59 years and 11 months. If you have received benefits from similar insurance within the past two years, you will not be eligible for coverage. Additionally, we have outlined other requirements below.Do I need to be a member of an unemployment insurance fund (A-kasse) to purchase the insurance?
You must be a Danish unemployment insurance fund member to receive coverage in case of involuntary unemployment.What is the minimum number of hours I must work to be eligible for the insurance?
You must work at least 16 hours per week to be eligible for supplemental compensation in the event of unemployment.Can I purchase insurance while living abroad?
If you're living abroad and want to take out supplemental unemployment insurance, you should know that the insurance only covers you if employed under the Danish labour model abroad. In other words, you must be available for the Danish labour market according to the rules of the unemployment insurance fund. Therefore, moving back to Denmark after losing your job would be best if you want to be covered by insurance.Can I receive insurance money if I've been living abroad for several years?
You can get money from your Supplemental Unemployment Insurance even if you cannot get help from the unemployment benefits fund (A-kasse). To receive assistance from an unemployment benefits fund, you must have lived in Denmark for at least seven of the past twelve years.Can I purchase insurance as someone self-employed?
You must be an employee to buy and be covered by the insurance.How to easily switch your insurance to IDA Forsikring
Are you interested in obtaining a low-cost supplemental unemployment insurance policy in Denmark? If so, you can easily switch to IDA Forsikring. However, if you already have a policy with another provider, you must cancel it yourself.If you previously had this type of insurance with a different company, you do not need to inform your seniority from that previous insurance. However, you should be able to provide documentation if Topdanmark requests it.Terminating your current insurance on the same day your new insurance with us takes effect is essential. This crossing typically happens on the first day of the following month. By doing so, you not only avoid paying for two insurance policies at once but also ensure that you retain the seniority you've gained from your previous insurance policy, giving you confidence in your decision.Where can I see my supplemental unemployment insurance?
As we offer our Supplemental Unemployment Insurance in cooperation with Topdanmark, you can view the insurance on 'My Topdanmark'.Table of contents
What is supplemental unemployment insurance?
How does supplemental unemployment insurance work?
How much of my income can I cover and receive payment for?
Overview
Supplemental Unemployment Insurance
Learn about the essential coverage aspects of IDA Forsikring's Supplemental Unemployment Insurance through an overview.
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Questions & answers
FAQ Supplemental Unemployment Insurance
Find answers to commonly asked questions about IDA Forsikring's Supplemental Unemployment Insurance, including coverage and additional options.
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Contact
Call or write to IDA Forsikring
Would you like to request for insurance or have any questions?
Phone:
70 21 01 91Contact us