No one can say with any degree of assurance that their job is safe as redundancies are happening frequently on what often seems to be a daily basis. While one cannot do anything regarding this there is at least redundancy insurance to consider. A policy would pay you an income which was pre-agreed by the provider at the time of you applying for the policy. This income would then be used towards maintaining your chosen repayments.

The amount you chose to protect of your mortgage or loan repayments or up to so much of your income is the amount you would be given back as a tax free sum if you had to claim. Payments would begin once the deferment period had passed and would continue to payout for the term of the policy. This would be dependent on the provider you chose to take protection with.

One of the leaders offering redundancy insurance is ethical British Insurance who would payout on their protection once you have been unemployed for just 30 days. They date back the policy to the first date of your unemployment and then continue to payout an income for 12 months if you should need to claim for this length of time. This would provide you security whilst you searched for work and got back to earning your own living again.

However you could decide to search around with other providers and compare the cost of a policy. If you do then you would have to pay attention to the small print. There are some providers that might ask you to refrain from claiming until as late as the 90th day. Some providers could also offer you cover that would continue to provide you with an income for up to 24 months, so again checking the terms for this is essential. Also find out what exclusions would apply in the policy as these too can differ. The ethical British Insurance adds in just the most frequently found exclusions but other providers could include many more in their policy.

Redundancy insurance can be taken out in the form of mortgage, loan and income payment protection. In the case of income payment protection the money supplied from the policy would go towards you being able to maintain all of your essential outgoings each month. You could distribute the income as you wished between any bills that came your way. Loan payment protection supplies an income towards you servicing your loan repayments and stops you from falling behind on the repayments.

This would in turn also help to protect your credit rating. Mortgage cover is essential in that it can stop you from falling into arrears with your mortgage repayments. Mortgage arrears which cannot be repaid can lead to you losing your home to repossession.

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