No, the offering described by the OP is not an accredited insurance plan, however it is a local union "fund" that is completely voluntary and created with the intent of helping their members navigate through the "get your job back with no back pay" BS too many face. Kudos for the effort.
Said it was administered by executive officers and another agency.
It's $400 a week for up to 16 weeks. That's $400 more than they're getting when the paycheck stops. Not meant to change anyones world but it will give members some comfort plus they'll have time to read good financial books.
We make more than enough money to have 3-6months of cash on hand for emergencies, including terminations. What I find mind boggling is the same people get fired over and over, come back with no pay after 3 weeks because they can't last, over and over. We all know how management likes to sit people out to "teach them a lesson" knowing they won't fight for back pay even with a good case.
Do we jack? I pay 300 a week in child support and another 150 alimony! Oh did I forget half of my 401k too! I hear Wut ure saying but saving for some guys (me included) is tough.
What you spend your money on is your buisness. I simply said we make enough money to have some savings for emergencies. I could argue people who make half of what we make can save more, it's all about priorities. Bad stuff happens, this is where your decisions will impact your future. Make saving a priority and you'll be amazed of where you could trim. Amassing an emergency fund isn't something you'll do forever, it's sacrificing now so you don't put yourself in a bad situation.
Insurance is the act of transferring risk you can't or don't want to absorb. Two things about this raise red flags. First, everyone looks at the 10 bucks a month, no one said anything about the initial fee to join which is still undisclosed.
We have a decent local, so I'm sure they have done their homework and run the numbers.
While your skepticism is understandable, this wasn't dreamed up on the back of a bar napkin, it's a local with leadership thinking outside the box to address the unfortunate position in which too many members find themselves. The initiation fee is $25. The number of participants must be 100 to receive the max amount or the benefit is reduced proportionate to participants. There's a 30 day waiting period to build assets. Participants get a max refund of $1800 (minus usage) at retirement. Again it's strictly voluntary with no dues money outlaid.
