Cheap redundancy cover could bridge the financial gap until you get back to work
- 30TH OCTOBER 2007
Cheap redundancy cover could bridge the gap and give you an income until you got back to work and it doesn’t have to be expensive. Redundancy cover can be taken out with a specialist provider in case you should become unemployed by redundancy or it can cover being off work due to accident and sickness too.
Redundancy cover comes in the form of payment protection insurance; this is an umbrella term that covers mortgage payment protection, income payment protection and loan payment protection insurances. They can be taken out if you are worried that sometime in the future you might become unemployed and lose your income.
The cover would then kick in after you had been out work for a certain length of time, which can be anywhere between 31 and 90 days and payout a tax free income. Once a policy had started to provide you with an income it would then continue to give your security for up to 12 months and with some providers for up to 24 months which is usually ample time to find another job.
The cover isn’t suitable for all circumstances though and you do have to make sure it would be suitable for yours and the best way of doing this is by shopping around with standalone providers. British Insurance for example are an ethical payment protection specialist, they can make you savings of around 40% of your mortgage payment protection and up to 80% on loan payment protection along with giving you the information you need to ensure that a policy would be suitable for your circumstances.
Mortgage payment protection is taken out to safeguard against becoming redundant and would give you the money with which to continue paying your monthly mortgage repayments and keep the roof over your head. Loan payment protection would cover your loan repayments and income protection would cover your lost income up to a certain amount each month, so that you could pay your essential outgoings.
Redundancy cover can give you a stop gap if the unexpected happens and you lose your job and income but it has to be bought wisely and only a specialist such as British Insurance can help you to decide if it’s right for your circumstances.
