The best Redundancy Insurance for when you need it most
Get an Instant Quote for insurance now
We’re here to answer your insurance questions
What are the benefits of getting a redundancy protection quote?
Anyone in full-time employment may one day have to face the uncertainty of sudden unemployment because of reasons beyond their control. Without any unemployment insurance to cover this eventuality you might experience a great deal of stress as you try to figure out how survive financially without your regular income or any supplemental income from a redundancy protection policy. Thinking about your monthly outgoings, would you be able to keep paying your mortgage, bills of debt payments if your income suddenly stopped and you had no redundancy protection? For many this can be a troubling thought but fortunately, just a little preparation can make a huge difference to your financial situation. By simply getting a payment protection insurance quote you are making the first step to achieving peace of mind in the eventuality of sudden and involuntary unemployment.
What is Payment Protection Insurance? (PPI)
Quite simply this is an unemployment insurance policy which means that should you lose your job because of involuntary redundancy, accident or sickness and no longer have an income, you will receive a monthly tax-free benefit to assist you with your financial responsibilities.
The different types of Payment Protection Insurance
There are three main types of unemployment cover available depending on what you are most worried about if you lose your job. If making your mortgage payments is most important you can take out a specific type of insurance called Mortgage Payment Protection Insurance (MPPI). If you have a lot of debt and credit card payments to make you might want to choose a form of loan payment protection insurance to help see that your debts don’t spiral out of control whilst you are unable to work. If you want to have more control over how you spend your benefits you can take out a more general income payment protection insurance policy which lets you use the money however you decide.
Where can I purchase a payment protection Insurance policy?
Sometimes, if you have taken out a loan or a mortgage, payment protection will have been applied at the time of securing your loan. However, taking out a payment protection insurance policy this way may mean that your payment protection insurance premium is calculated over the entire life of the loan or mortgage and included in the amount being loaned. This can mean that interest is added on to your payment protection as well as the loan which can notably increase your final loan amount.
There is no obligation to take out a payment protection insurance plan with your mortgage or loan provider and shopping around or using an independent insurance broker can see you get a much better deal. It also gives you more control over your cover, it isn’t fixed to the term of your loan or mortgage and for each month that you pay your premium, you would receive the peace of mind of being covered. Should you decide you want payment protection against your mortgage or loan and manage to clear your debts sooner you also have the flexibility of being able to then easily cancel your policy.
What else should I know about taking out unemployment cover?
When you receive your payment protection insurance quote spend some time going through the terms and features of your policy as different providers will have slightly different policy features. In terms of how much you are able to insure through your redundancy protection policy, the limit will be determined by your insurer but you can usually expect to cover 50% of your gross monthly income or up to £1,500 a month, whichever is the lowest amount. You would receive this as a tax-free benefit throughout your unemployment protection term which is usually up to either 12 or 24 months. Typically, it is between 30 and 90 days of consecutive unemployment or incapacity before you receive your first payment and this again depends on who your provider is.
Taking out a payment protection insurance quote is a simple but important step towards achieving financial peace of mind in case you find yourself suddenly unemployed through no fault of your own. Once you have unemployment cover you can relax knowing that should you lose your job through redundancy or incapacity you won’t have to worry about mounting debts and losing control of your finances.