New Insurance Plan Pays Child Support for Parents Who Lose Jobs
INDIANAPOLIS (AP) _ John Corner doesn’t have to worry about being called a deadbeat dad. He bought an insurance policy that will make his $640 monthly child-support payment if he loses his job.
The option is touted as the first of its kind in the nation.
``The bottom line is that my kids would suffer if they didn’t get this money,″ said Corner, 36, a Fort Wayne used-car salesman and divorced father of two.
Diller & Associates of Fort Wayne began offering the policy this month. Cigna Property and Casualty of Philadelphia agreed to underwrite it.
Randy Diller, vice president of Diller & Associates, said the policy is aimed at people in danger of losing their jobs because of corporate downsizing. People who quit their jobs cannot collect.
``My research found that many of these people were faced with mortgage payments, car payments, so many things besides child-support payments,″ Diller said. ``This allows them to go out to seek employment with the comfort of knowing that their support obligation is being met.″
Bob Zeman, vice president of the National Association of Independent Insurers, said he had never heard of such a policy before.
The policy can be purchased by either parent, or the parents can split the cost. To qualify, the applicant must have been employed for at least a year.
Policyholders can buy one to four months of guaranteed child support. Corner chose one month, for a $133.40 annual premium, because he feels certain he could land a new job within 30 days.
``I can get a job for the most part anywhere,″ he said. ``But if I am laid off ... I have this as a backup.″