It is not uncommon for people to find that they are suddenly being made redundant through no fault of theirs. This is all more relevant in today's economic environment where there is instability in every sector and austerity drives in most organisations. Having a redundancy protection insurance policy offers you financial support to help you pay your bills, as well as giving you peace of mind. In the event of unexpected redundancy, you would receive a monthly income for you to use to pay your bills, debt obligations or even your mortgage. Redundancy income protection insurance is part of the payment protection insurance group of products, also known as PPI. By having a policy you would have protection against involuntary redundancy. This financial assistance will help you carry on with your lifestyle and focus your efforts in finding a job and get back on track.
How does redundancy protection insurance work?
Redundancy protection insurance is a form of income payment protection scheme which means that should you be made involuntarily redundant and find yourself without an income, your insurer will make payments to you each month to help cover your outgoings. Depending on the terms of your redundancy protection insurance policy, you could be receiving your benefits within 30-90 days of being out of employment. This certainly alleviates any stress or worry you might otherwise have about meeting your financial obligations. In the current economic situation prevailing in the UK, redundancy protection insurance cover is a good way of securing your income.
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Expect the unexpected
You may have heard of the term statutory redundancy pay. This is a legal obligation for employers to pay you a sum of redundancy money should you find yourself made redundant through no fault of your own. The problem with statutory redundancy is that it is often such a negligible amount of money. Redundancy payouts may not stretch to cover your monthly financial obligations over a significant period of time. Having redundancy protection insurance means that you won't suddenly find yourself in the stressful situation of expecting redundancy payments and finding out that you're not receiving enough financial assistance. Redundancy protection insurance isn't only for those who are concerned that their employer may not compensate them enough should they be made redundant, if you are self-employed and worry how you will support you and your family should you be unable to work, you can take out a self employed redundancy policy.
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Putting you in control
Redundancy protection insurance is about putting you in control financially and you need to make sure you choose the best policy for your circumstances. For example you may want to choose a policy which pays out for only a few months so that you can have a cheaper premium, or opt for a bigger term of payment in the eventuality that you are out of work a lot longer than expected. Most policies will have a maximum payment period of 12 to 24 months. By spending some time finding the best policy for you, you are able to choose redundancy or unemployment protection insurance that suits you and your requirements.
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Redundancy protection insurance for all eventualities
Redundancy protection insurance doesn't just cover you should you be made redundant, there are also policies out there which provide you with a monthly income should you find yourself out of work through sickness, or through an injury from an accident. A sickness redundancy insurance policy means that should you suddenly find yourself unable to work through illness, you can focus on your recovery rather than worrying about how you are going to pay your bills. An accident redundancy insurance plan ensures that you receive regular benefits if you become unemployed from sustaining an injury through an accident.
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