There is not much you can do, of course, to protect yourself from the fact of redundancy, but you can certainly ensure that you are protected from its fallout. Redundancy protection is a form of insurance – from the stable of payment protection insurances – that guarantees a regular monthly replacement income in the event of your being made involuntarily unemployed.
Redundancy, of course, is the scourge of all those working people with a mortgage or rent to pay, credit cards or loans to repay and a myriad of regular household bills – practically everyone, that is to say. Without the working income which has been used to pay all those monthly commitments, severe financial difficulty is bound to follow. It is hardly surprising, therefore, that redundancy is one of those events most worth protecting against.
Although the Nation’s jobless are still much fewer than in the early 1990s, there are worrying trends that the figure is beginning to rise again in response to the currently faltering economy. The Office of National Statistics, for example, has reported that the number of unemployed currently seeking work increased in each of the first three months of 2008, to reach the highest total in two years.
In the wake of increasing redundancies and rising unemployment, of course, the number of people facing debt problems and other financial worries begins to climb. The evidence is everywhere – from the debt counselling agencies that are reporting such floods of new enquiries that some are even having to turn away new “clients”, all the way to the statistics on individual applications for bankruptcy. With respect to the latter, the Ministry of Justice recently reported a significant 12% increase in applications during the first three months of 2008, compared to the last quarter of the previous year.
Redundancy protection can help you avoid becoming one of these unfortunate statistics. In the event of an involuntary redundancy, the insurance would pay out a regular monthly benefit – in effect, a replacement income – that can be used to stay in control of all the household bills and continue to manage debts before they become problems.
Redundancy protection is also surprisingly affordable. To discover just how reasonable are the monthly premiums, a good place to start is with a reputable independent insurance provider, like British Insurance – a company specialising in redundancy protection and offering some of the best value for money policies available.
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