Redundancy cover could help you to keep on top of your outgoings should you lose your income due to involuntary unemployment. While it might be another payment you have to make each month if you take into account how you would manage to maintain outgoings such as your mortgage, loan repayments or your rent and utility bills then you can see what a policy could be well worth the small monthly premium.

You could choose to protect up to so much of your mortgage or loan repayments or your income with a policy and then claim this back if you were to find yourself a victim to unemployment. There would be a period of time that you would need to stand before making your claim and this is generally between the 30th and 90th days of your redundancy. You might then be eligible to claim an income for up to 12 months and with some providers it might be up to as long as the 24th month if you needed to claim for that length of time.

Should you take a policy over 24 months it would cost more than if you took one out over 12 months as you would be able to claim for twice as long. You also have to weigh up that you could find work well within a period of 12 months but also that any policy you took out would cease if it should reach the term.

Redundancy cover could be taken out in the form of mortgage payment protection. This policy of course would provide a substantial amount of income towards you being able to meet your mortgage repayments each month. You would not have the fear of falling behind on your repayments and the possibility that you could lose your home. You might want to consider loan protection if you have monthly loan repayments that you need to keep up with. Falling behind on secured loan repayments could lead to you losing the property secured on the loan or missed payments for an unsecured loan could mean bailiffs coming into the home to take your possessions. If you want an income in general then you could take out income payment protection. This policy would ensure that you would have the money to meet whatever essential repayments you needed to maintain. You could use some of it to keep up with your rent; you would have the income to keep food on the table for the family and to pay your utility bills and more.

All forms of redundancy cover would of course only pay out in the event that you lost your income to redundancy. However, you could take on a policy that would provide an income if you suffered either event by paying a little more each month for your cover. Your provider might also throw in carer cover. if they do you would be able to make a claim on your policy should you have to give up your full time job in order to stay home and take care of a family member.

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