Protect yourself against financial disaster with redundancy cover
- 18TH AUGUST 2007
Redundancy cover as the name suggests, is taken out by those who are in work and who wish to protect themselves against the fact that they could be made involuntarily redundant in the future. A sad fact is that the amount of repossessions that are occurring are on the increase due to unemployment.
However, with redundancy cover you could receive a fixed monthly which makes sure that you can meet your mortgage or other monthly credit repayments.
Redundancy cover is usually sold under the names of mortgage payment protection insurance and income payment protection insurance and although they both work on the same principal of giving you a fixed amount of money each month. This enables you to continue meeting your mortgage or loan and credit card repayments if you were made redundant. However, the cover does vary slightly.
Just as the policies differ so does the quality of the protection and the premiums that are charged for it. If you go for the cover with the high street lender then you will pay well over the odds for redundancy cover. However, if you choose wisely and go with a specialist independent provider such as the ethical British Insurance, then you save around 80% on payment protection insurance and 40% on mortgage payment protection insurance.
As with all insurances, there are pros and cons and there are hidden exclusions within all policies that may stop you from claiming so it is essential that you understand these. Luckily British Insurance offer clear advice and information regarding the exclusions within a redundancy cover policy which means that you can make a much more informed choice as to whether the insurance is right for you.
