Also known to some as “unemployment cover,” or “income security insurance,” a redundancy policy will help to add another level of support to your financial coverage policies. That said, some people are unsure when or even if they need such coverage and it is imperative that you make the right choices for your future if you truly want to avoid frustrations and financial damage after an incident. You never know when involuntary redundancies may cause you trouble and many people find themselves unprepared for the aftermath and are left facing the reality of unreliable incomes.
The Coverage Explained
Redundancy insurance is a policy designed to cover partial loss of income due to unexpected layoffs, which will offer limited financial protection in the event of involuntary redundancy. This type of insurance is not as commonly held by citizens as you may believe and only a handful of qualified insurers actually offer the policy to interested clients. While this may be true today, the number of people getting policies for this type of coverage has grown exponentially in recent years and will only continue to grow as people begin to understand the importance of such coverage.
Purchase
You may choose to buy your policy alone or to have it added to your existing income protection policy for a small addition to your premium and the company offering you the service will help you to make the best and most informed choice for your needs. First, contact a reputable and reliable insurer that you know for a fact will offer you the coverage and then speak with a representative about your options and where to go from the starting point. By the time you complete the agreement and have your insurance policy made official, you will have greater peace of mind knowing that you are protected in the event that you find yourself without guaranteed financial support.
Coverage
Generally speaking, redundancy protection will pay monthly benefits of as much as 85% of your typical income after you find yourself without a job for a specific, set period of time. There are limits to the benefits offered that may differ from one insurer to the next, although they will generally be within the same level of each other. You only have a set number of months to make a claim, meaning that you will absolutely run out of time to claim your benefits if you do not act quickly and contact your provider as soon as you are able.
Other benefits are included as part of this type of policy and you will only benefit yourself by contacting a professional from the start as a means of learning important information about this coverage. If you purchase this coverage without carefully taking the time to understand its limitations and requirements, you may find yourself confused when you need the policy to be working in your favour. A reliable professional will thus help you to look through your available options, choose a policy best suited to your needs, and then have it set up for you.