A redundancy insurance policy could give you a replacement income each month
- 31ST OCTOBER 2007
A redundancy insurance policy could give you an income each month if you were to be made involuntarily redundant and this would give you peace of mind that you wouldn’t be left struggling when it came to carrying on with your day to day living expenses, loan or mortgage repayments.
A redundancy insurance policy can also be known as payment protection insurance or ASU insurance because the cover can be enhanced also protect against accident and sickness along with becoming unemployed by such as redundancy. It can give peace of mind by way of mortgage payment protection, loan payment protection or income protection and all policies would payout a tax free sum of money each month once you had been out of work for a certain length of time continually.
If you go to a standalone provider for the cover you will get the insurance much cheaper than with the high street lender and in the case of choosing a policy from standalone and ethical specialist British Insurance you can make savings of up to 80% on mortgage payment protection and 40% on loan payment protection.
British Insurance would start to give you a tax free income from unable to work from the 31st day and would then continue to provide you with a monthly tax free sum for up to 12 months. However, policies with other providers differ and some ask that you remain out of work for up to 90 days and continue to give you money for up to 24 months.
Simon Burgess, Managing Director of British Insurance, warns that it is essential to check the small print and key facts of any policy you are considering to make sure that it would be suitable for your needs. There are exclusions and some of the most common include being retired, self-employed, only working part time or if you have had an ongoing illness. Exclusions can differ as can the premiums so be aware of this when shopping around.
A redundancy insurance policy can give you an income to replace a lost one up to so much per month by way of income protection and this means that you can carry on paying your essential outgoings. Mortgage payment protection would cover your monthly mortgage repayments and so you wouldn’t be risking losing your home to repossession and loan protection covers you monthly loan repayments.
