Safeguard against unemployment with a redundancy insurance policy
- 27TH SEPTEMBER 2007
A redundancy policy could, providing you meet the criteria set out in the policy, pay you a tax free income each month if you should be made redundant and lose your income. If you were to suddenly lose your income you would be faced with struggling to find the money to meet the essential bills each month unless you had taken a redundancy insurance policy.
A redundancy insurance policy can also be known as loan payment protection, income protection or mortgage payment protection insurance (MPPI). You can take policies to cover against just unemployment through redundancy or can add protection against additional threats to your financial security with sickness and accident cover.
Policies pay out after you have been out of work for 30-90 days depending on the cover and, with good policies, will backdated to day one of your claim. A redundancy insurance policy will pay a lump sum which is tax free each month and which will last for up to 12-24 months depending on the terms and conditions of the policy.
However as with all insurances, a redundancy insurance policy has certain exclusions which could mean that you might not be able to claim on a policy and so it wouldn’t be suitable for your needs. Some of the most common reasons why you wouldn’t be able to claim include being in part-time work, being retired, self-employed or suffering from a pre-existing medical condition. It is essential that you read the small print in the policy and understand them. A standalone payment protection specialist such as British Insurance will make sure that you are given this information in plain English.
British Insurance is a leading specialist in redundancy insurance and their products regularly feature in the best-buy tables, as well as featuring prominently in National newspapers, TV and on the web. They offer some of the lowest premiums for their redundancy products and back them up with years’ of experience and honest advice.
Simon Burgess, Managing Director of the company warns the consumer to shop around for the redundancy insurance policy: “Avoid the high street lenders like the plague as, historically and still now, they rip-off their customers with over priced, often unsuitable cover. Get several quotes from standalone providers to compare before making the decision to buy.”
