Faqs On Redundancy Payment Protection Cover?

By Author: Kirthy Shetty
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What is redundancy payment protection cover?

It is basically a protective cover to pay you a portion of your salary in case you are made redundant due to injury, sickness or have lost your job due to inevitable reasons. It will not cover you in case you have voluntarily stayed away from work.

Will this payment protection cover you for your mortgage payment?

This payment protection cover will cover your mortgage as well as your credit card bills if you are unable to go to work. Some times, there is a full payment of your monthly mortgage charges paid out to you.

Why is such a policy required?

It is always recommendable to be prepared in times of any untoward incident. You may face some risky and unfortunate event such as an accident and you are crippled, you may find it difficult to manage your living expenses and timely mortgage payments, in such circumstances you will be well protected.

Will you be paid a salary in case you are on your sick leave and out of work?

No, insurance policy will let you enjoy multiple income. If you are on your paid sick leave and are out of work, you ...
... will not be paid by the insurance company. In case you have exhausted your sick leave and are on loss of pay you will be compensated.

For how long will you be covered?

This will depend on what you have mentioned in your policies while applying for it. If you have applied for a coverage up to your retirement age say, 60 to 65 years, then you will be compensated till that age.

How much of your monthly income will you be able to insure with this type of unemployment insurance?

Insurance company will allow you to cover up to 50% of your gross monthly income, or £1,500 whichever is the least amount.

What kinds of cover can I receive as part of this insurance?

Insurance Protection offers the following three cover options:

Accident, sickness and unemployment cover
Accident and sickness only cover
Unemployment only cover

Will the insurance cover you for mortgages?

Yes, any pending mortgage payments or debts will be paid back. Seek help to safeguard your collateral or house and keep your mortgage payments on time. This will save you from getting into any kind of debt and accumulating a negative credit score. Play it safe!

Kirty Shetty, author in Insurance domains. Get all your free tips related to: Quotes for Redundancy Protection

Get more information on: Income Protection for Unemployment