The Features Of Redundancy Cover

Have you ever been made redundant? If not, consider yourself lucky, but if your luck ran out, will you be prepared? Redundancy cover will pay you a regular income if you were faced with involuntary unemployment. The benefit is tax free and you will be able to use all of it to pay your monthly bills.

The payment period usually lasts from 12 to 24 months and is something you will have to check with your provider.

This policy can be combined with other types of involuntary employment circumstances but on its own, the premiums will usually be lower.

How Does The Cover Work
Generally, the ability to make a claim under this cover will kick in only after a specified deferred period has passed, anywhere between 30 – 90 days after you are made unemployed.

The benefit you receive will cover a percentage of your gross income; it will not match your full salaried income.

There is no medical underwriting so the chance of your application being accepted is very high.

There are eligibility rules and exclusions which differ from provider to provider so you will need to take note of these to make sure you will be covered in the event of a claim.

Once you are aware of all the ins and outs of redundancy cover, the benefits become even more evident and with it, the importance of protecting your income.