The fact is that we all need redundancy protection but there are many forms as you will see. For example if you were to lose your job you will need an alternative income until you find a new job. You may receive a good package from your company; you may have access to savings or state benefits. Perhaps you have friends and family to bail you out. In a way these are all ways to protect yourself.
In this article however we are catering for people who have none of above options to fall back on. For you a redundancy protection product may be the only way you get through a period of redundancy.
As the name implies the policy will only cater for unforeseen involuntary redundancy. If your provider allows you can add on cover for sickness and accident if you so desire.
The policy pays a tax free benefit each month for 12 or 24 months depending on the provider you select. If you find work before the 12 or 24 month period then your benefit will cease.
You can use these funds to pay for any of your expenses if the policy is independent of any specific debt.
The great thing about these policies is that along with the financial benefit there is peace of mind as well. Losing your job is stressful and has been likened unto bereavement as you often go through the same emotions. The last thing you need at this time is additional stress about how you will make ends meet. The payment from the policy is one way to help you through the difficult time.
Policy Details
To apply for a policy you will need to prove a minimum period of employment and this will be stipulated by your provider. You will also need to meet age, residency and other criteria before you can be accepted.
Once up and running you may need to have your policy for a minimum period before you become eligible to make a claim. Even then there is a deferment period that you must wait out before making a claim. Most providers have a period between 30 and 90 days.
In order to obtain a policy that is suited to your needs, read the policy terms and conditions carefully. It will explain information about the number of times you can make a claim plus you can see if there are any exclusions that relate to you.
Things To Note
Your provider will not pay the equivalent of your salaried income as a benefit so you need to calculate the amount of cover you need based on your monthly expenses. Thanks to the maximum benefit levels, only a percentage of your monthly income will be paid as a benefit.
Summary
So do you think you could benefit from redundancy protection? If so the time to act is now. If you want a sure way to access an alternative income in the event of redundancy, then this policy will provide a financial benefit along with peace of mind.
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