Redundancy cover
Redundancy
During a recession when redundancies are more likely, it's natural to consider the options available should you be one of the unlucky people who lose their job.
Carefully assess all your current financial obligations and liquid assets to get a clear and realistic view of how long you could survive without income. For most people, being out of work for just three to six months would incur serious hardship. If you are single, you may decide that you can do without life insurance as you have no dependants.
If you are married with children, it’s essential to get as much cover for both life and income as you can reasonably afford. When you are thinking about reducing your costs if you lose your job, it is really important to keep your insurances going to provide the vital security for you and your family.
Do not wait until the worst happens! Prepare well in advance for your peace of mind as worrying about job security is stressful enough. You cannot get a policy if your employer has already informed you that redundancy consultations are in progress – you will not qualify if this is in motion whether you personally lose your job or not. If there is no specific risk of redundancy or unemployment right now, you should consider a redundancy and unemployment insurance policy – these are specific types of policies that will pay out monies for your mortgage and living expenses while you seek new employment – usually for up to 12 months.
MORE TH>N is grateful to Ron Wheatcroft, Technical Manager at Swiss Re for his contribution to the above content.
MORE TH>N offers the following cover options:
- Unemployment and Short Term Income Protection (Sickness) Cover: providing up to 12 months cover against loss of income as a result of becoming unemployed, an accident or sickness.
- Long Term Income Protection (sickness) cover which pays you an income if you are unable to work due to accident or sickness until either you recover or reach normal retirement age
- It’s quick and easy to get your income protection quote online.