Redundancy protection is your lifeline against income loss that was brought about through unemployment or incapacity. If either of these events should arise you would have money towards the outgoings or repayments that you chose to take protection for. This could be your mortgage or loan repayments or such as your rent and utility bills.

You would of course have to choose the most suitable type of redundancy protection and then choose how much you wanted to protect. This would be so much of your repayments or your income and the provider would need to pre-agree to this amount. Your income would be paid over so many months, generally in the region of 12 to 24 months which is dependent on your provider. Should you be given an income over 24 months then you would need to pay more for the cover as it would of course protect you for twice as long if you were to have to claim for the full term. Some providers will also date back your benefit to the first day that you lost your income so this has to be checked at the time of applying for cover when you check when a claim could be made and how long the provider paid over if benefit was needed that length of time.

You might choose to protect your mortgage repayments with mortgage payment protection. This income would go a long way towards ensuring you did not fall behind on your mortgage repayments. If you were to accumulate arrears and be unable to catch up then you could lose your home.

Loan payment protection secured so much of your secured or unsecured loan repayment. Again this income could stop your home being taken if you had secured it on the loan and had fallen behind with the repayments. It could also stop the lender from taking proceedings in court to gain back what you owe from unsecured loan debt.

Income payment protection would typically provide a replacement income of up to £1,500 or half the gross monthly income that you bring home. This money could then be spread out over whatever outgoings needed to be maintained. You would have money towards being able to continue meeting your rent and your utility bills for instance.

Redundancy protection can be taken out just to ensure that you would have an income in the event of you becoming unemployed. However if you wanted to pay a little extra each month you could also have protection against incapacity too. A claim could then be made if you became a victim and sufferer of either event. Should you choose a generous provider then you might also be entitled to make a claim if you needed to stop working full time to take care of a family member, so this is worth checking when taking your cover.

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