SALARYGAP Partners Reveals Re-employment at a Reduced Salary Can Be Worse than Unemployment

New wage insurance benefit is designed to help fill the gap in salary
from re-employment

CHICAGO–(BUSINESS WIRE)–#disabilityinsurance–Workers, who become involuntarily unemployed and are later reemployed at
a lower salary, typically face hardships more severe than the
time between jobs. SALARYGAP® Partners LLC., an insurance
product development company, has announced a new product to address this

Unemployment is certainly no picnic. It can be a very painful, isolating
experience. Yet, workers who lose their jobs can qualify for
unemployment insurance, a regular payment to help with the transition.
This insurance ends once the individual gets a new job.

“After people deal with their involuntary dismissal, they are often
faced with the harsh reality of earning less when they finally land
another job,” explains Bill Graham, an architect of SALARYGAP®
Wage Protector™ insurance and a co-founder of SALARYGAP®
Partners LLC. “You could go out and find another job, but if you are now
bringing less home, it could likely turn your life upside down and be an
extraordinary stressor on your family and your health.”

Research over the past 15 years reveals that reduced earnings after a
worker is reemployed are potentially far more severe for workers and
their families than the period in between jobs.1 Earning less
money than the previous job makes it harder to accumulate savings for
retirement and make major purchases. Economists have referred to the
phenomenon of workers earning less money when they re-enter the
workplace – even during economic expansions – as wage scarring.2

“It made perfect sense that we built the SALARYGAP® Wage
Protector™ insurance product to deal with this issue, as this is a
problem affecting workers across the globe,” adds Graham.

The Great Recession of 2008 and years of off-shoring millions of jobs
overseas to lower-wage workers have greatly contributed to unstable
employment for wage-earners. However, economic instability is a constant
threat for wage-earners. Consider that, while over half a million new
businesses start each year, an almost equal amount close. In 2014,
514,332 new businesses were started; 548,159 closed; and 55,250 went

“Even in the best scenario following a job loss, it could take months to
find another similarly paying job,” adds SALARYGAP® Partners
LLC. co-founder Bill Jolicoeur. “In the meantime, an insured person can
use Monthly Benefits from this coverage to help pay any bill or loan and
minimize dependence on their savings.”

Workers with more than 20 years of experience in a prior job earn 20%
less in their new jobs.4 SALARYGAP® Wage Protector
™ is designed to help provide income protection for employees of a
business and members of an association. It allows employees and members
to purchase a Monthly Benefit to protect them from income shortfalls due
to qualified Disability, Involuntary Unemployment or a Salary Gap
following Involuntary Unemployment due to reemployment at a reduced
salary of 15% or more. The Monthly Benefits can be used at the
policyholder’s discretion to cover any payment obligations such as
monthly insurance premiums, auto or lease payments, medical expenses,
utility bills, mortgage principal, interest and taxes. The Monthly
Benefit is subject to term and income restrictions.

For more information, please contact SALARYGAP® Partners’
President, Bill Jolicoeur, via email at


1 Lori G. Kletzer, “Why the U.S. Needs Wage Insurance,” Harvard
Business Review,
January 25, 2016,
(accessed June 11, 2016).

2 Ben Leubsdorf, “The Recession’s Economic Trauma Has Left
Enduring Scars,” The Wall Street Journal, May 9, 2016,
(accessed June 11, 2016).

(accessed June 11, 2016).

4 “Fact Sheet: Improving Economic Security by Strengthening
and Modernizing the Unemployment Insurance System,” January 16, 2016,
(accessed June 11, 2016).


Bill Jolicoeur, 608-219-7886