Payment Protection Insurance

The insurance can cover some of your fixed expenses: rent or monthly housing fees, mortgage interest, telephony and broadband, insurance premiums, household electricity, water, heating and waste collection, ground rent or homeowners’ association fees, parking and vehicle tax, as well as your streaming services.

Payment Protection Insurance can provide cover if you have a fixed income from one of the following types of employment:

• Permanent employment: You are permanently employed, work at least 22 hours per week and have been with the same employer for at least 6 months.

• Fixed-term contract employment: You work at least 22 hours per week and have been with the same employer for at least 12 months. You can get compensation for the remaining time of your contract.

• Self-employed: You have run your business for at least 12 months, derive your main income from it and work in the business at least 22 hours per week.

You also need to be eligible for compensation from Försäkringskassan.

You can choose an insured monthly amount of 6 000 kr or 12 000 kr. If your fixed monthly expenses are equal to or higher than your insured amount, you may receive the full amount.

In the event of sick leave, the compensation is adjusted according to your degree of sick leave: for example 50%, 75% or 100% of your insured amount.

The total compensation cannot exceed 90% of your lost net salary and is paid out for up to 12 months. The compensation is tax-free.

It depends on how high your fixed monthly expenses are and how much you would like to be able to receive if you lose your regular salary. A higher insurance amount means you can receive more compensation each month, but the insurance also costs more.

The insurance starts providing compensation after you have been unemployed or on sick leave for at least 30 days. The first 30 days are known as a waiting period. This means that compensation may be paid for costs incurred after the waiting period has ended. Your compensation is paid monthly in arrears.

To start receiving compensation, you must have signed the insurance at least the following number of days before an event occurs:

• At least 30 days before illness or an accident

• At least 90 days before unemployment

• At least 180 days before bankruptcy if you are self-employed

The purpose of this so-called qualifying period is to prevent the insurance from being taken out when something is already about to happen.

No. The insurance does not cover voluntary unemployment if you resign from your job. It also does not apply if you are fired due to misconduct.

Payment Protection Insurance and Income Insurance serve different purposes.

Payment Protection Insurance helps you cover fixed costs if you become unemployed, go on sick leave or need to care for a close relative.

Income Insurance is a supplement to the Swedish unemployment funds (“a-kassan”), helping to cover up to 80% of your salary if you earn over a certain amount and lose your job. It generally only applies in the event of unemployment and can be included in a union membership fee or purchased as a separate add-on.

Yes, but it depends on the type of compensation.

For example, in the event of unemployment, you may receive compensation for fixed costs through your Payment Protection Insurance and get help covering your lost salary through your Income Insurance.

In the event of an accident, you may receive compensation for a permanent injury through your Accident Insurance and use your Payment Protection Insurance to cover fixed costs if you are unable to work.

In other words, the insurances covers different things, even if the same event is the reason you become eligible for compensation. However, it should not be possible to make a profit from using one's insurance.