Being made involuntarily redundant and deprived of the means of making a living can be a devastating experience. Redundancy insurance may provide a welcome financial breathing space.
The challenges of finding a new job can be difficult enough without the added burden and worry of trying to manage financially when your income stops.
Loan repayments that may have been manageable while you were working, may rapidly become impossible to meet.
Redundancy cover is a form of payment protection insurance (PPI). There are three main types and levels for the protection that PPI can provide, namely:
· income protection - where you are paid a monthly lump sum and can continue to manage your own budget and outgoings on a monthly basis;
· mortgage payment protection - which ensures that your mortgage continues to be paid each month;
· loan payment protection - which covers other loan types including credit card repayments.
Cover typically lasts until you find a job or for a period of up to 12-24 months. The amount you receive will be pre-agreed and will be based on certain criteria.
In addition to providing protection in the case of involuntary redundancy, incapacity to work due to an accident or illness can also be covered (often this is known as ASU insurance -accident, sickness and unemployment insurance).
The days of a job for life (if they ever really existed) are long gone. For many people, these days the level of their monthly financial commitments may mean that redundancy insurance may be a sensible precautionary step.
The challenges of finding a new job can be difficult enough without the added burden and worry of trying to manage financially when your income stops.
Loan repayments that may have been manageable while you were working, may rapidly become impossible to meet.
Redundancy cover is a form of payment protection insurance (PPI). There are three main types and levels for the protection that PPI can provide, namely:
· income protection - where you are paid a monthly lump sum and can continue to manage your own budget and outgoings on a monthly basis;
· mortgage payment protection - which ensures that your mortgage continues to be paid each month;
· loan payment protection - which covers other loan types including credit card repayments.
Cover typically lasts until you find a job or for a period of up to 12-24 months. The amount you receive will be pre-agreed and will be based on certain criteria.
In addition to providing protection in the case of involuntary redundancy, incapacity to work due to an accident or illness can also be covered (often this is known as ASU insurance -accident, sickness and unemployment insurance).
The days of a job for life (if they ever really existed) are long gone. For many people, these days the level of their monthly financial commitments may mean that redundancy insurance may be a sensible precautionary step.
No comments:
Post a Comment