union powered income insurance

The company Mysafety Försäkringar are currently running adds on social media for their income insurance, and while doing so, taking jabs at unions and the income insurance they provide. Let’s take a closer look together. Here’s the copy for the Facebook add:

“Only 90 days qualifying period and 11 months of compensation. An income insurance usually has 12 months qualifying period and 7 months of compensation.”

So let’s see which income insurance will be the best choice for our fictional character Emma, a regular white collar worker with a monthly salary of 41.000kr.

Unionen income insurance (incl in membership):
Fee: A-kassa 100kr + membership fee 235kr = 335kr
Salary ceiling: 60.000kr
Qualifying period: 12 months
Compensation period: 7 months (150 days)
Amount: 70-80% of the base salary

This means that during 7 months of unemployment Emma’s income will be ~32.800kr before tax, ~22.300 after tax (32%). Akassan covers at most 26.400kr, so Unionen tops up her salary with 6.400kr a month.

Mysafety Försäkringar
Fee: A-kassa 100kr + insurance fee 199kr = 299kr
Salary ceiling: 45.000kr (to match Unionen’s 60.000kr the fee goes up to 269kr)
Qualifying period: 3 months
Compensation period: 11 months
Amount: Fixed taxfree sum depending on your insurance fee

This means that during 7 months of unemployment Emma’s income will be ~26.400kr before tax (from A-kassa), ~17.950kr after tax. And then an extra taxfree payment of 4.352kr, giving her 22.304kr a month. And the same is true for month 7-11.

Looks more or less the same right? The private insurance even lasts for longer? 🤷🏻‍♀️ Yeah, except with Unionen you get a full blown union members for basically the same cost and that includes so much more than just income insurance (free legal help just to mention one thing).

But, as always, the devil is in the details. Which means fine print. And, once you start reading the fine print of the MySafety insurance, the choice should be dead easy.

“To be eligible for the insurance, you must be permanently employed for the past 12 months. You must be a member of a Swedish unemployment insurance fund (A-kassa), not over 55 years of age and not have received unemployment insurance in the last 2 years. You are also not allowed to have received a personal notice, or due to your position at the company, be aware of any upcoming notice (varsel).”

Unionen only fine print? “You need to have worked at least 80 hours per calendar month in total of 12 months during the last 18 months.”

Case closed. Union membership FTW.