Job Loss Protection

Due to the failing economy, many marketers are now offering job loss protection.However, this article shows the whole picture, and it may not be worth it in the long run. Many people are worried, since the unemployment rate has been on a steady increase, and are in search of the best deals, however many of these deals are two-sided. The airline, JetBlue, promises that if you book a getaway and are laid off before the end of the year, they will then let you out of the deal. The car company, Hyundai, promises that if you get laid off in year one, then they will allow you to return the car, and it also covers $7500 in negative equity. And homebuilders Ryland&Lennar are willing to help buyers cover mortgage payments within two years of purchasing a home. In reality, those who are fearful of losing their jobs shouldn't be considering any of these major purchases. I feel the best bet is with JetBlue--it is a good deal if you have the extra cash to spend on a vacation and it is not as big of a decision as the others.However, if considering purchasing any of these, keep in mind that, if you do end up getting laid off you will need to meet the companies criteria to benefit from their offer. Their restrictions can include: showing proof of collecting unemployment benefits, benefit being limited to the buyer and excluding benefits to the buyer's family and understanding after all is said and done you may still owe something.
(Money Magazine, August 2009)