3 Things To Do When You Lose Your Job
The Tata Group has shut down Tata Teleservices Limited (TTSL). If you are using Tata Docomo, you might have to port to a new mobile service provider. More than 5000 citizens could lose their jobs. Tata Teleservices Limited has already prepared an exit plan for its employees.
Tata Teleservices Limited has given a notice of 3–6 months to its employees, severance packages for those willing to leave earlier, a voluntary retirement scheme (VRS) for employees over a certain age and a small group of employees have been shifted to other Tata group Companies. Circle heads of Tata Teleservices Limited have been informed of this, in September itself. A circle head can earn a salary around INR 1 Crore. Circle heads of Tata Teleservices Limited, have been told that if they leave immediately, they will be paid a full salary till the end of the financial year.
These are the lucky ones. But, what if you are not among the lucky ones? Shouldn’t you be prepared to survive a job layoff? Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
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3 Things To Do When You Lose Your Job
Why not prepare for a job layoff well in advance, rather than panic if the unexpected happens? While slashing expenses and creating a new budget is a must, there’s more you can do. These are the ways you can prepare for a job layoff.
1. Always have money ready for an emergency
If you suspect your job is at stake, better prepare for it with an emergency fund. Prepare an emergency fund anyway. If you are single, your emergency fund must have at least 3 months of living expenses. If you are married, it must be at least 6 months of living expenses. There’s something more you can do.
If you believe that getting a new job will take a while and you have a loan to repay, keep at least 6 months of loan EMI’s ready to meet an unexpected job loss.
2. Keep your health insurance plan ready
You must never depend only on the group health insurance plan provided by your Company. This plan covers you, only when you work for this Company. What if you find yourself out of job? How will you manage the hospitalization expenses? Always have your own individual health insurance plan. An health insurance plan will take care of your hospitalization expenses, if you fall ill and land in hospital. Hospitalization can be really expensive these days.
You never know how important an individual health insurance plan can be, especially if you lose your job. If you are married with children, take a family floater health insurance plan. Family floater plans cover you, your spouse and 2 children.
If you suddenly find yourself out of job and you or a family member is unlucky to land in hospital at this time, you will have to pay for hospitalization, from your own pocket. (Out of pocket expenses). Why not opt for a family floater health insurance plan?
SEE ALSO: 4 Step Plan For Surviving A Job Loss
3. You may have to reschedule loans and insurance premiums
Losing your job may force you to reschedule loans and insurance premiums. Stopping your life and health insurance premiums are not an option. Find out if the insurer will allow you to alter the periodicity of payments or even opt for a temporary reduction in cover.
How will you repay your car and home loan EMI’s if you lose your job? You have to convince your bank that you want to repay your loans. Then, your bank may allow you a break in your EMI payment (a temporary EMI holiday), till you get a new job. Your bank may also offer to reduce your EMI’s by increasing the loan tenure. A loan protection plan which covers your loan against emergencies like a job loss is also a good idea.
If you are investing in mutual funds through SIPs, you may have to stop your investments temporarily.
Losing a job = Tough times. You may have to sell your assets, take a loan against your investments or even borrow from your family. But, take heart….Tough times don’t last, tough people do. Be Wise, Get Rich.