Redundancy Insurance

Can be also known as unemployment insurance or PPI...

In today’s uncertain economic conditions, everyone seeks to protect themselves against possible unemployment or redundancy. Purchasing redundancy insurance cover is one such option.

• Redundancy insurance or unemployment insurance promises the insured regular financial payments incase of his unemployment due to redundancy, and hence help him to maintain some financial stability until he finds another job.
• Redundancy insurance cover can prove to be very beneficial in hard times, as it compensates for loss of income, and pays off all the outstanding debts namely loan payments, credit card payments, etc. the benefits does not end here as it also cover you against sickness, payment protection, income protection, etc.
• Redundancy insurance cover can give you your income protection and also your mortgage payment protection just in case you face redundancy.
• The income provided by the insurance policy is completely tax free, so the person who faces unemployment or redundancy can experience some peace of mind during his tough times. The unemployment insurance policy also gives an option to postpone the payment by 30, 60 or 90 days.
• The longer the postponed period, the cheaper will be the policy cover. Another added advantage of the redundancy insurance policy is one can claim policy more than one time. Meaning that after a brief period of unemployment a person gets a new job, but faces redundancy yet again.
• In that case, redundancy insurance policy will resume its duty to cover the person financially, if the person continues to pay the policy’s premiums.

Consider the disadvantages of PPI redundancy insurance

Along with all these advantages, the unemployment insurance policy also has some disadvantages.

• Redundancy cover incurs costs, the monthly expenditure of the policy varies between the policy sellers.
• In the UK most of the PPI redundancy insurance policy sellers sell the policy when the customer purchases mortgages, which is indeed the most expensive way.
• The redundancy policy only covers unemployment which is involuntary.
• If the person leaves his job by choice, then he will not be provided with any financial cover by the redundancy policy.
• Redundancy Insurance covers only a certain section of the employed people. The covered section does not include part time workers or people above the age of 65.
• Before buying a redundancy insurance policy consumers must carefully read the conditions stated in the policy document, as in some cases the document does not give right to the insured to claim back the policy in future, if required.
• Often redundancy insurance cover does not provide cover to the insured immediately after purchasing the policy. The person must pay the first six months installments to claim the benefits of the policy.

A secure future, without any risk of financial instability is what everybody seeks. With all its pros and cons, redundancy insurance cover is a beneficial plan to purchase. However the customer must always be well informed and cautious at the time of buying, so that he gets the best and reasonable deal for his outlay. Unfortunately PPI insurance is often misold.

If you’re not sure what do to next – get in touch with us. We should be able to sort out which company is involved and pursue then for compensation.

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