We’re here to answer your insurance questions
* What will it cover?
o Monthly Income
o Mortgage Commitments
o Your Rent
o Loan Payments
o Credit Card Bills
o Household Expenses
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* Why should I Buy?
o Extremely Low Rate
o Fantastic Cover
o Few Exclusions
o Excess Free period
o Tax Efficient
o Interest Free Payments
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* What does it do?
o Pays upto £1500
o Tax Free Payment
o Covers Unemployment
o Covers Accident & Sickness
o Covers Redundancy
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Redundancy protection insurance cover from Best Insurance
Having a job is no longer something that can be taken for granted, which is why if you are in full-time employment it is worth considering some form of redundancy protection in case you have to face the unfortunate circumstance of involuntary redundancy. Redundancy protection can safeguard you against unforeseen occurrences which affect our ability to bring in a monthly wage. Particularly during times of economic crisis we become more aware of how vulnerable we are to sudden changes in our employment status. Redundancy protection is even more important since we are no longer in the golden age of settling with a company for your working life with a guaranteed job. Unemployment protection is a simple way to protect yourself against the financial hardship that might otherwise follow from losing your job.
Simple Protection Against Involuntary Redundancy
By having a suitable form of redundancy protection you can receive a monthly tax-free income to help you cope with the financial aspects of being made involuntarily redundant. Redundancy protection is an insurance product that falls into the Payment Protection Insurance (PPI) range of products that can ease your financial burdens should you suddenly find yourself out of employment. If you are made involuntarily redundant and find yourself without an income, you will still have bills to pay, such as monthly expenses, mortgage, rent, credit card and loan debt. Without knowing where you’re next monthly income is coming from this can be very stressful to deal with. By simply having a suitable form of redundancy protection you can take a huge weight off your shoulders.
How does redundancy protection it work?
Once you have a policy for payment protection insurance such as redundancy protection, in the event that you find yourself involuntarily unemployed , you will begin to receive a monthly income after a set period of time from the date of unemployment. The length of time you have to wait before receiving payment under your unemployment protection will vary between policies but it is typically between 30 and 90 days. Most people usually want as short a period as possible to ensure peace of mind and this should be considered when you are deciding which unemployment insurance policy would suit you the most.
Once your policy begins to pay out, you will receive a regular tax-free sum to help you manage with your bills and financial responsibilities. The majority of policies will continue to pay you an income as part of your unemployment cover for up to 12 months, though it may be sooner if you find employment before this time. If you think you would like additional security and peace of mind whilst looking for new employment, you can pay a higher premium for your redundancy protection and some insurers will offer a paying out period of up to 24 months.
How Much Will your monthly Income Be?
This will depend on your policy, but typically with unemployment protection insurance you can expect to receive 50% of your gross monthly income or up to £1,500 whichever is the least. This can provide a huge amount for comfort to those who might otherwise have had to rely on State benefits. Financial support from the government can be inflexible and unable to provide as high a level of financial assistance than an unemployment insurance policy. With stringent criteria for eligibility, government assistance might not even be available to you depending on your circumstances and without private redundancy protection, even if you received government benefits, you could find it far below the level you would require to not struggle financially.
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The different types of redundancy protection insurance cover
Redundancy protection insurance, unemployment cover, unemployment protection and unemployment insurance are terms to describe policies which provide you with an income in the event of you suddenly being made involuntarily redundant from your work place. These types of insurance products fall within the Payment Protection Insurance range of products. Within these products you can choose more specific levels of cover which fall into three main categories, depending on what you want to use your insurance income for.
The three main types of coverage available are mortgage payment protection insurance, loan payment protection insurance, and more general income payment protection insurance.
Mortgage Payment Protection Insurance (MPPI)
A large monthly expense is often the mortgage repayments and it can be worrisome to work out how to secure the finances needed to make the payments if you have become recently unemployed. Mortgage Payment Protection Insurance addresses the specific need of meeting your mortgage payments so that you can continue to make regular payments and do not need to worry about defaulting or putting your home at risk by not being able to make the payments. As you receive your monthly sum it will contribute towards making the mortgage payments. Mortgage Payment Protection Insurance can also help with associated costs such as home insurance and life cover payments.
Loan Payment Protection Insurance
This particular type of policy is a great benefit to those who might have regular loan or credit card repayments that would still need to be made in the event of unemployment. Trying to manage repayments as well as regular monthly expenses without an income can be stressful and Loan Payment Protection Insurance is designed to tackle your regular credit obligations to help prevent the situation spiralling out of control.
Income Payment Protection Insurance and Income Protection Insurance
If you need more control over how you spend your income payments then you can opt for unemployment cover which is not specific to any particular type of debt. This puts you in charge of your financial situation and allows you to decide whether you use it for loan repayments, monthly expenses, food costs or even things like transport costs and new interview clothes to help you return to employment. Income Payment Protection Insurance is intended as a short term insurance, which covers you if you are suddenly out of work due to events beyond your control. It shouldn’t be confused with Income Protection Insurance (though they have similar titles) which is a more long term policy which can cover the policy holder up to retirement but usually only covers them in the event of incapacity. The type of insurance which falls under the redundancy protection bracket is the shorter term Income Payment Protection Insurance.
Additional Protection
As well as the above types of policies, you can also add on extra coverage to your unemployment cover so that in the event of being unable to work due to an accident or illness, you would still be able to receive financial assistance. Though no-one expects an accident or sickness to befall them, if it does happen it can be an incredible comfort to know that you still have an income coming in through your redundancy protection so that you can focus on getting better rather than worrying about your financial obligations.
What are the benefits of redundancy protection?
Taking our redundancy protection puts you in control and ensures you don’t have to rely on the government for financial assistance which can be a difficult to obtain and limited in its ability to cover your financial requirements. For example, should you find yourself eligible for mortgage assistance from the State, you would only be entitled to make the interest repayments which could be far less than if you had specific mortgage payment protection insurance.
If you found yourself ineligible for government benefits you may find yourself relying on savings and it can be worrying to watch these dwindle as you try to make your financial obligations whilst also concentrating on finding new employment.
Taking a few moments to choose a unemployment insurance policy that’s right for you means that in the event of sudden unemployment you can focus on getting back to work without having to experience the stress that mounting debts without income can cause.
Choosing the best deal for you
Best Insurance works to find an affordable solution for your redundancy protection and we work hard to provide you with a comprehensive range of competitively priced insurance products. Based on your needs you can select an appropriate payment protection insurance policy which will give you peace of mind should you find yourself in the unfortunate circumstance of sudden involuntary redundancy or unemployment. From just a few pounds a month for every £100 worth of protection, you can purchase the satisfaction and control of financial assistance in uncertain times.
