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Comment by mdorazio | Hacker News Reader

This is interesting, but it seems like it would appeal to a different demographic than HN. If you're younger and have highly desired skills in the market, the numbers just don't add up for this. However if you're older and concerned that a layoff might leave you out of work for multiple months, it could make sense.

Just playing with some numbers, if you work in "Information" in California and make $100k, you're looking at just over $100/month in payments according to their calculator. Say you get laid off two years from now, you would have paid $2,400 for the insurance. Payments don't kick in for two weeks, and only add $511/week over what normal unemployment would give you, so you would have to remain out of work for 7ish weeks to break even.

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Meanwhile, you'll be paying for 24 weeks of coverage. And, so, 24 times $511 means, the maximum payout is $12,264 in taxable income, so maybe $8,000 in net cash.

So, at the 7 year mark (or maybe right now), just start questioning whether a simple, ordinary savings account would have been the better idea.

And, oh yeah, you don't get 24 weeks coverage until you've paid for coverage for 6 months. Otherwise, you just get back maybe $600 at best, and then The End. So you'd better have six months living expenses (or a solid job), AND $600 to pay into the policy, before even bothering, otherwise you're still screwed.

> Meanwhile, you'll be paying for 24 weeks of coverage.

Actually, premium payments are waived while on claim.

No, I just meant in general. Under the circumstances that you're fully employed for 7 or 8 years, and never need to make a claim, the maximum payout is always 24 weeks of unemployment supplements. Therefore, after 8 years, you might have paid more than you'll ever get back, even with incremental raises during that lengthier period of time.

You can lose your job more than once.

Welly, welly, welly, welly, well.

I see your point.

I played with the numbers - for GA for $120,000 for "information". It was $50 a month. Not bad for an extra $785 a week. It would give me some breathing room not to take the first job offer and to be more picky. I might also be willing to stay at a job I like instead of leaving at the first whiff of distress.

I may be cynical but a 2 month job search after being laid off doesn't sound that unreasonable

For a large number of people, I totally agree. However for, say, a software developer in Silicon Valley I doubt it would take nearly that long unless they wanted it to. Note that for non-tech industries the monthly premium goes up significantly (+$40 for Leisure and Hospitality, for example), so the break even time gets longer.

Interestingly, the numbers seem to indicate that they expect people employed in Public Administration to have the easiest time finding a new job. The premium payments for that are less than half what they are for IT.

> Interestingly, the numbers seem to indicate that they expect people employed in Public Administration to have the easiest time finding a new job.

Or that they are the least likely to be laid off in the first place.

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