Is there redundancy protection – is there any protection against the loss of a job? Sadly, in terms of avoiding the actual fact of redundancy, there is precious little protection. For all their words, for all their posturing, neither governments of any hue, nor trade unions, nor any kind of pressure group can effectively save jobs that employers are forced to axe.

The very next best thing to saving the job itself, however, is to save the regular, dependable and known income that the employment brings. Anything that can protect the income is redundancy protection indeed. And this is the protection afforded by redundancy income payment protection insurance – a long title for describing the deceptively simple and straight forward means of ensuring that a regular, monthly income stream is maintained even though the job itself might have been lost.

This variety of payment protection insurance pays out a regular monthly benefit – at a level determined by the policy holder from the outset – in the event of compulsory redundancy. At a time when economic recession is beginning to bite ever deeper and employers turn more and more to cutting staff costs as a way of remaining in business, redundancy rates are inevitably rising. There will be two million out of work by the end of this year and a possible three million by the end of 2010 (according to The Independent newspaper - 24 October 2008).

Against this background, of course many people are looking for redundancy protection in a way that safeguards an income necessary to pay the many household bills and expenses during that desperate interval between losing one job and finding another. Unemployment income payment protection insurance provides just such a safeguard, paying out a regular, replacement monthly income in the event of redundancy.

Generally speaking (and subject to the variations inherent in the detail of various insurers), such policies allow the policy holder to insure up to 50% of his or her normally earned income, or £1,000 a month, whichever is less. This benefit then continues to be paid on a monthly basis until the policy holder secures a new job, or up to a maximum of 12 months, whichever is the sooner. Some policies (with admittedly higher monthly premiums) even give the option of extending this maximum payout period for up to 24 months.

One of the leading independent providers of such cover is British Insurance, whose managing director, Simon Burgess, says: “redundancy protection is no longer a luxury against some unlikely event, but an all-too possible prospect facing many of the country’s population. It is the sort of protection that few people can afford to be without”.

For some people, the need to cover redundancy with some form of unemployment insurance will be self-evident; for others, there could remain the somewhat misplaced belief that redundancy is precisely the kind of situation in which the fabled “welfare state” will come riding to the rescue.

Those with good reason to worry whether their jobs will survive the current economic recession are those taking heed of the recent newspaper headlines about the rising tide of unemployment. According to The Independent newspaper on the 24 October 2008, for example, on current trends, the total number of unemployed will have reached 2 million by this Christmas, while economic analysts predict that the figure will rise to 3 million by the close of 2010.

With the odds on any one, individual job falling prey to redundancy on an ever-upward trend, therefore, many of those currently in employment are already looking to cover redundancy with insurance that will provide some form of financial security in the event that the worst should happen to their own job.

With those same odds on the risk of other jobs being lost, some people lay store in the provisions of the so-called welfare state. On closer examination, however, these provisions seem frugal indeed. Currently statutory redundancy pay, for example, can only be claimed by those who have been continuously employed by the same employer for at least the previous two years. For those who qualify, the payment is just half a week’s normal pay for every complete year of service for those aged less than 22; one week’s pay for each year of service for those between the ages of 22 and 41; and one and a half week’s pay for each complete year of service for those aged 41 and above.

In addition to redundancy pay, Job Seekers’ Allowance is also payable to those looking for work. But the current rates of that allowance are – at the maximum – a meagre £60.50 each week for those aged over 25 (it is still less for younger claimants).

All in all, therefore, the welfare state offers very low rates of redundancy cover and most working people would be hard-pressed to meet the normal round of household bills and expenses from even the maximum rates of benefit offered – hence the attraction of individually-tailored redundancy or unemployment insurance.

As the spokesman for one of the country’s leading independent providers of this product, Simon Burgess of British Insurance, puts it: “long gone are the days of a cradle-to-the-grave welfare state that looks after us when the going gets tough. In this day and age, it’s down to the individual to make sure to cover redundancy – the welfare state is ill-equipped to make as good a job of it”.

The spectre of redundancy is returning to haunt the country’s work force. According to the government’s own figures, the rate of unemployment is rising faster than at any time in the past 17 years and some commentators fear that the total number of unemployed could top three million before the decade is out (in the opinion of The Independent newspaper 24 October 2008, for instance). Involuntary unemployment will strike many in the year or so ahead. There is no time like the present, therefore, to consider cushioning that impact with redundancy insurance.

How does redundancy insurance help to sweeten the bitter pill of sudden and unexpected unemployment? In a very simple and straight forward way, in place of the income regularly and dependable earned from the job, it steps in when that job is lost, to provide a temporary, replacement income that is designed to make the transition from the previous employment to a new job more than a little easier.

It is the loss of a regular income, of course, that is one of the toughest hardships of redundancy. One moment, there is just about enough money coming in each month to pay all the bills and to keep your head above water; the next moment, that life-support system is gone and there is nothing at all to pay all the household expenses. By providing an alternative, replacement source of income, redundancy insurance can cushion the impact of being out of work and missing that all-important pay-cheque.

In the words of Simon Burgess, managing director of one of the country’s leading providers of this kind of insurance, British Insurance, puts it: “none of us can predict when redundancy might strike. But when it does, the abrupt loss of a regular, dependable income hits us hard. That’s why redundancy insurance is so effective in cushioning the impact”.

The amount of replacement income provided by this type of insurance – the amount needed to cushion the impact of redundancy – can be determined by the policy holder from the very outset. In most cases – though the actual limits will vary from insurer to insurer – this can be as much as 50% of the policy holder’s normally earned income, or £1,000 a month, whichever is less.

Designed to provide an essentially temporary cushion between compulsory redundancy and the finding of a new job, redundancy insurance generally pays out for up to a maximum of 12 months, which is quite sufficient in all but the most exceptional circumstances, when some policies will provide the policy holder at the outset to extend the maximum payout period to up to 24 months.

There are good reasons, these days, to be worried about redundancy. A good deal of the worry and concern can be lessened considerably, however, by a very basic safety first measure by the name of unemployment income protection insurance.

Three million of the workforce unemployed by the end of the decade is a tally that of course gives cause for concern. This is the total forecast by some analysts looking ahead to the year 2010 and the basis for a report in The Independent newspaper on the 24 October 2008. For many people currently in work, the prospect of redundancy seemed little to worry about – most of their jobs appeared to be reasonably secure. Things changed in the wake of the credit crunch, of course, as the British economy slid into recession and the rate of unemployment rose to its steepest in at least 17 years. Already, it is commonly expected that some two million people will be without a job by this Christmas.

The risk of any particular, individual job being made redundant, of course, is extremely difficult to calculate. Some sectors of the economy will be more vulnerable than others, but it will be difficult to predict exactly where the axe might fall. The simple fact of the matter is that it could be yours.

Those prudently acting on the safety first principle, however, will have forearmed themselves with unemployment income protection insurance, an eminently simple and straight forward measure which guarantees a regular, monthly replacement income in the event of compulsory redundancy.

The level of cover required is chosen at the outset and will be determined by the prospective policy holder’s decision to balance the cost of the monthly premiums against the amount of income that would be required to tide him or her over in the period between a possible redundancy and the first day in a new job. Typically – but depending on the particular insurer chosen – the maximum amount of cover that can be bought in this way will be 50% of the normally earned salary whilst in work or £1,000 a month, whichever is less. Once the cover has commenced the benefits become payable in the event of redundancy and will continue to be paid each month until the policy holder returns to work in a new job, or for up to 12 months. Depending on the particular policy chosen, the option might be given, on payment of an additional premium, to extend this maximum period of payment to 24 months.

Leading specialists in the provision of unemployment income protection insurance are British Insurance, whose managing director, Simon Burgess, asks: “will your job survive the round of redundancies that lies ahead? Who can tell? Many, though, will be more than a little worried. The modest cost of premiums for reliable and effective redundancy insurance, however, is a small price to pay for putting the safety of your finances first”.

With banner headlines announcing the fastest growing population of unemployed for 17 years, a total of 1.8 million jobless by the final quarter of 2008, 2 million forecast by the end of the year and a frightening 3 million predicted by some, come the end of 2010, it is hardly surprising that practically anyone with a job is frightened of losing it. Unemployment protection will not actually prevent anyone from becoming out of work but it will certainly soften the blow by safeguarding an alternative income in the event of redundancy.

This unemployment protection takes the form of income payment protection insurance which pays out a regular, alternative monthly income to help cover all manner of bills and household expenses, pending a return to normal working. Unemployment protection will not deliver the whole of your usually earned income from working but it can provide a significant proportion of it and bring home enough to get by on until alternative employment can be found.

Although the details of the cover available will differ from insurer to insurer, most allow the amount of monthly income insured to equal 50% of the policy holder’s normal, earned income, or £1,000, whichever is lower. Because the insurance is designed to provide temporary relief, these benefits will then be payable every month until the policy holder returns to work or for up to a maximum of 12 months, whichever comes first. Some policies will allow payments to be made for a maximum of 24 months, although the cost of the premiums for such extended cover is naturally higher.

“There’s precious little anyone can do to protect themselves against the risk of redundancy – and with the total jobless figures rising every month, the individual risk is growing daily”. So says Simon Burgess, managing director of one of the independent market leaders in the provision of income payment protection insurance, British Insurance. “But none of us is powerless when it comes to safeguarding against the consequences of losing the job. A very modest outlay on the purchase of unemployment protection insurance provides a huge measure of reassurance and peace of mind that monthly bills continue to get paid, even if redundancy should strike”.

Unemployment protection can be bought by anyone currently holding a regular job. Premiums will work out cheaper the earlier the insurance commences and, with many of the policies available, the premiums are “age-related” – the younger the policy holder, the cheaper the monthly premiums. This reflects the statistically demonstrable fact that those in the younger age brackets manage to find alternative employment sooner than older age groups following redundancy.

Time could be running out for many consumers to get their hands on a particularly useful, if not indispensable, piece of protection against the ravages of increased unemployment. As the growing number of redundancies follows in the wake of the deepening recession, some insurers are taking the view that the risks are becoming so great and the number of claims so unacceptable that they are simply withdrawing unemployment insurance policies from the market. The message seems clear, therefore – get unemployment cover while you can.

News of the somewhat drastic measures taken by some insurers to avert their losses by withdrawing the product was broken in a report in The Independent newspaper on the 2 November 2008. This revealed that one of the country’s largest companies, Norwich Union, has withdrawn such policies from the market amid fears that other insurers could follow suit.

The retreat from such business is viewed with some alarm, since unemployment cover is designed to provide anyone with a job at the moment with enough of an income to live off if they find themselves made compulsorily redundant. The benefits of the insurance policy then payable should provide adequate income until alternative employment can be found.

Although the details of each policy differ from insurer to insurer, it is generally possible to insure up to 50% of the current earned income, or £1,000, whichever is the lower figure. In the event of redundancy, benefits are then payable each month until the policy holder secures another job or for up to a maximum of 12 months – and some insurers will even offer the option of extending this maximum period to 24 months. In either event, of course, such a dependable, regular source of alternative income during a period of enforced unemployment can make all the difference between managing to get by or falling into crippling debt and financial problems.

Consumers who have already purchased unemployment insurance are widely expected to see their policies continue to be honoured – and not cancelled – by the issuing insurer. But the message to anyone who has so far failed to arrange this simple and currently very affordable cover is crystal clear – buy it while you can.

One of the leading independent insurance providers of unemployment cover is British Insurance and their managing director, Simon Burgess, assures anyone still looking to buy such insurance that: “we are still in the business of arranging this type of cover and will ensure that policies written now continue to be honoured in the event of the policy holder’s unemployment.”

Probably one of the most serious effects of economic recession is the rising tide of unemployment that inevitably follows in its wake. The trend in official figures is inexorably upwards and the consensus amongst most commentators is that the total number of unemployed with have passed the two million mark by the end of 2008 and could hit 3 million by the end of the following two years. With redundancies in almost every walk of life continuing to rise, more and more people could be in need of unemployment insurance.

A report in The Independent newspaper of the 24th of October 2008 reflected the commentators’ estimates of the relentlessly rising totals of unemployed in Britain and further predicted that workers in the following industries stood a less than 50/50 chance of holding on to their jobs: manufacturing; financial services; shop working; construction; hotels and catering; the media; and North Sea oil. In other words, very few sectors of the economy will remain unscathed.

Unemployment insurance could prove a lifesaver for any of those affected by such redundancies. In return for payment of a modest monthly premium and depending on the chosen insurer, the policy holder can cover anything up to a typical maximum of £1,000 a month, or 50% of his or her previously earned income, whichever is less, and thereby enjoy a replacement income until such time as alternative work can be found. If there is no return to work, such monthly benefits can continue to be claimed for up to a maximum of 12 months with most policies, although some will continue paying out for up to 24 months.

“Nearly two million unemployed would have been almost unthinkable this time last year” says Simon Burgess of British Insurance, “and with the number of redundancies rising at their current rate, unemployment insurance is something that should be considered by anyone currently in work, whatever their sector of employment. Redundancies in one sector will inevitably have a knock-on effect on several other areas of employment, as the general recessionary pressure is brought to bear on the economy as a whole”.

British Insurance is one of the leading independent providers of unemployment insurance. The product is widely sold as a package covering the additional risks of accident and sickness as well as unemployment, but a standalone financial safeguard against the loss of income inevitably following on from redundancy is especially useful in the present economic climate. Moreover, by limiting the cover to the risk of unemployment alone, it is possible to secure such insurance for an especially modest and affordable price.

Accident sickness unemployment insurance – or ASU insurance as it is popularly known – is a long-time favourite. Perhaps it is because it that rare insurance product that describes precisely what it does in its title. More likely, however, is the simple fact that it offers a crucially valuable rescue package whenever one of life’s setbacks threatens financial disaster.

The descriptive title well and truly sums up precisely how this simple and straight forward insurance cover works. In the event of the policy holder being unable to work because of an accident or sickness, or because he or she is unemployed through no fault of their own, the insurance pays out a regular monthly benefit in order to mitigate any financial loss incurred.

What is more, these benefits can be tailored to suit the particular purpose for which they are intended. For example, the insurance can be used to provide a replacement, general-purpose income to help cover assorted household bills or it can be specifically earmarked so that monthly loan repayments are maintained even when incapacity or unemployment has kept the policy holder from working. In this way, a replacement income, or funds with which to maintain loan repayments, can be arranged to cover as much as 50% of the policy holder’s regular working salary.

Of course, probably the single most critical monthly payment that most people will want to insure is the mortgage repayment, since defaulting on this for even a month or two can lead to difficulties with the mortgage lender, adverse credit reports and, ultimately, even repossession of the home. Fortunately, accident sickness unemployment insurance is sufficiently flexible to provide cover specifically for those mortgage repayments. Indeed, if this is the purpose to which any claimed benefits will be put, then it is generally possible to cover up to 75% of normally earned income or £3,000, whichever is the lower figure. It is even possible to include in such cover the cost of mortgage-related insurance premiums, such as mortgage life insurance and the home buildings and contents insurance premiums.

One of the important features to remember about this type of insurance, however, is that it is intended to provide a short- to medium-term rescue package only. That is to say, it will offer a financial rescue plan for incapacity or unemployment that lasts longer than a month but no longer than 12 months. The first of these intervals is the typical “qualifying period” out of work before a claim will be entertained (the qualifying period itself can vary from 30-60 days, depending on the particular insurer). Claimed benefits then become payable for every month the policy holder remains off or out of work, up to a typical maximum of 12 months (although some policies will offer the option of extending this period to up to 24 months).

One of the most experienced, market leaders in the field of accident sickness unemployment insurance is independent provider, British Insurance, whose managing director, Simon Burgess, adds: “the continuing popularity of this handy and very cost-effective insurance is well-deserved – providing, as it does, an immediate rescue package at those times when the unexpected takes us by surprise”.

It’s difficult to weigh up which poses the biggest risk – are you more likely to be off work through the incapacity brought about by an accident or illness, or do you run the bigger risk of losing your job entirely? All-in-one accident sickness redundancy insurance takes the guesswork out of such decisions and provides reliable and effective protection against all three.

However well you take care of yourself, the actual likelihood of your being incapacitated through an accident or sickness is more or less down to the roll of the dice. Although the probability of it happening to you is difficult to pin down, therefore, insurers Norwich Union nevertheless did some research suggesting that at any one time nearly 2 million of the country’s total work force are unable to
work for more than six months due to accidental injury or ill-health.

The same research revealed that the average worker is nearly twenty times more likely to be incapacitated from working for more than six months than they are to suffer a premature death before retirement age. This highlights an apparent anomaly in the fact that although a large number of people think about and actually arrange life insurance, far fewer consider accident and sickness insurance.

When it comes to the chances of being made redundant, it is similarly difficult to be precise, of course, but the briefest glance at the newspapers will tell you that the odds are increasing daily. It seems widely accepted that the number of unemployed will top 2 million before 2008 is out and that 3 million is a distinct possibility before the end of 2010.

Given a rough shape of the odds, therefore, it is clear to see why accident sickness redundancy insurance is a desirable option. In the event of any such misfortune striking the policy holder, the insurance will pay out each month either a general income replacement or a specific sum to take care of mortgage or other loan replacements. The level of the monthly benefit payments in the event of a claim is determined by the policy holder at the outset and, for income replacement or to cover a loan, can be as much as 50% of his or her normally earned income or £1,000, whichever is less (although the precise limits will vary from insurer to insurer). If the insurance is to be used as a form of mortgage protection, these limits are typically increased up to the lesser sum of 75% of normal earnings or £3,000 (with the exact maximum again varying from policy to policy).

A company specialising in the provision of affordable accident sickness redundancy insurance is British Insurance, whose managing director, Simon Burgess, says: “no one knows, of course, if or when incapacity or unemployment might strike. They can happen to anyone, at any time, and with the economy in the shape it is in at the moment, the most prudent step is to arrange low-cost, but effective and reliable insurance cover against each of these risks”.

As if worrying about the possible meltdown of the entire global banking system, the rising tide of unemployment, or ever escalating prices weren’t enough, there is the ever-present risk of losing a month or two of income simply by being unable to work because of an accident or illness. That, of course, is when accident sickness insurance comes into its own.

However much the world around us is being buffeted by one economic crisis after another, there are some things that continue to be governed by the fickle hand of chance. Accidental injury, for example, is defined by its sudden unexpectedness. No one knows when an accident might happen. But if injuries are sustained and there is a need to take time off work to recover from them, the potential loss of income can bring still further difficulties in its train. All the routine, household bills, of course, still need to be paid – somehow.

Similarly, an unexpected and obstinate illness can be dealt to anyone, regardless of the care they take. Once again, it can lead to a month or two off work and the kind of disruption to a steady income stream that can easily throw into complete disarray the most carefully planned domestic budget.

Accident and sickness, therefore, are the most common types of misfortune keeping a very significant number of people off work every year. Although some employers might have seemingly quite generous sick-pay packages, the restrictions and conditions can leave some employees less well-off than they thought they might be. Furthermore, as the current recession bites into the business performance of an increasing number of employers, those sick-pay packages look set to become less and less generous than once they might have been.

Accident sickness insurance, therefore, is designed to allow the employee to take matters into his or her own hands when it comes to protecting an income when random misfortune strikes. Provided the incapacity is such that absence from work is needed for longer than a given “qualifying period” (which can range from 30 to 60 days, depending on the particular insurance policy), the insurance pays out a regular monthly benefit.

The benefit can take the form of a general income replacement or be used to cover a known commitment to loan repayments and is typically subject, depending on the insurer, to maximum cover that is typically equal to 50% of the policy holder’s regular earned income or £1,000, whichever is less.

Alternatively, the cover can be used for the specific protection of most people’s most critical monthly obligation, the repayment of the mortgage. In this case, the maximum amount of cover is generally higher and can typically cover (again, depending on the particular policy) up to 75% of the normal monthly income or as much as £3,000, whichever is the lower figure.

An expert in the field of accident sickness insurance, Simon Burgess of British Insurance, comments: “the completely random and unexpected nature of this kind of incapacity is often overlooked and many of us think we’ll be immune – until the accident happens or we succumb to illness. Accident and sickness insurance is something to be seriously considered by any working person”.