Mis-selling Of Redundancy Insurance – How To Protect Your Self?

By Author: Shourya Ray Chaudhuri
Total Articles: 598
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Be it a payment protection insurance or unemployment protection insurance, you must be aware that no policy is mandatory. You are at free will to choose your policy and can make your own decision. It is a necessity to have such protective policies in place but not compulsory.

Redundancy protection policy and its mis-selling?

You may be made unemployed involuntarily but you have a policy in place to protect you. Remember, that if a seller tries to promote any protective policy as mandatory along with your loan approval then he is mis selling the policy to you. It is a huge amount to pay every month, if you have to make both loan installments as well as the insurance premiums.

You can weigh your pros and cons of an insurance policy see if it is really necessary to you. The installments you make each month will be high, therefore it is important to apply for it only if it is necessary and you are more susceptible to lay offs. It may also be necessary if you have no other income source to bank on. In order to lead a normal life you must take care of these things and work out a fair deal.

Grocery bills, ...
... medical expenses, education fees, mortgage loans or other loan payments, credit card debts etc. You will be protected by this policy when you are out of employment not out of choice!

In case some lender has mis sold you, then you must be aware that you can claim for compensation from him. You can take your complaint to financial ombudsman service. It's a terrible feeling when you realise that you have been duped into buying a useless extra you didn't actually need. Unfortunately this is the reality in today's pressure-selling economy, and every month many thousands of people are swindled into taking out insurance policies which are worthless. Work undertaken is on a no-win no-fee basis so there is no risk involved at all and nothing to pay in the unlikely event that things go wrong.

Once you are made involuntarily unemployed, the policy will begin to pay out after a set period of time. This does vary among the different redundancy protection providers but is typically anywhere from 30 to 90 days after you are made unemployed.

A lender cannot sell a payment protection policy if you are self employed. Protection products are not the easiest to understand. They can often be filled with technical jargon and there are exclusions to all policies that could mean you would not be eligible to claim. Some of the exclusions which can be found in most protection insurance policies include being self-employed, suffering an illness, being of retirement age or if you do not work full time.

Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Redundancy Insurance
Get more information: Credit Card Payment Protection Insurance