Know Your Redundancy Covers To Deal With The Unexpected

By Author: Shourya Ray Chaudhuri
Total Articles: 598
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Looking at today’s economic conditions one has to be prepared in advance, with a plan B to survive in this expensive world and be able to lead a normal life. The fear of losing the job, falling sick, getting injured and not being able to recover faster, are few worries that keep the mind worked up trying to figure out the way to pass through such an unfortunate phase at ease.

Insurance companies provide the best protection to your savings and help you live up to your responsibilities, which might seem impossible to carry forward looking at the financial condition you might be in due to sudden loss of job, due to serious illness, major injury and involuntary redundancy which can happen anytime, even though you are not at fault. One has to be well prepared to face such situations strongly, and, this is when insurance providers come into the picture. These insurance companies work wonders for those, who have chosen them as their plan B during the time of need. There are many insurance providers with varied kinds of premiums allowing you to choose, with which ever you are comfortable. You have to be very careful while choosing ...
... any of these, and, while doing so one must do so by keeping many criteria’s in mind with regard to his age, salary amount etc.

Redundancy Insurance Cover also known as Redundancy Insurance, can help you protect either your salary or mortgage repayments if you are going through the unfortunate phase of financial issues, caused due to loss of job due to redundancy. However, there are two types of Redundancy cover, comprising Mortgage Protection insurance and Salary Protection insurance. Either way, both help you to meet your financial commitments which you thought would be impossible to deal with, knowing your condition with regard to your job. The money received from the insurance policy should not be treated as income, provided, through regular payments under the terms of your Redundancy cover you are paying the bills of your monthly expenses, a loan, credit card, mortgage, or similar agreements.

Before you opt for an insurance cover, one must do a proper research on them as various insurance providers offer varied premiums benefiting you. If you need your Redundancy Insurance to cover your mortgage, the maximum monthly benefit you are allowed to insure is 65%, and for salary protection, the maximum monthly benefit you are allowed to insure is 50% of your normal income. According to insurance company’s policies, you would be eligible to receive benefit payments after either 30 or 60 days of continuously being unemployed, and, the benefits of the policy you have chosen will cease only after you have received 12 monthly payments.

For more information: Redundancy Cover
Get more information: Income Protection