Redundancy insurance protects your outgoings
Losing your job and income after being made redundant would be hard, struggling to pay your outgoings would be even harder. You would need to find the money to pay your mortgage. If you had credit cards or loans then you would also need to maintain these and of course there are many other outgoings which have to be maintained also. You would be able to continue meeting your bills and continue paying out if you take redundancy insurance.
You have to look around online and compare the cost of redundancy insurance as some premiums are a lot higher than others. You also have to compare the quality of the policy as this can differ too along with when and for how long the policy would payout. You can find all the information in the key facts of the particular policy and this should be available on the provider’s website. You can also find a wide variety of information with the provider by way of FAQs and articles, and you should find as much as possible about the product you are considering buying before taking it out. Policies will come with exclusions and some will have more than others and you have to check them against your personal circumstances if you want the peace of mind and security that protection gives.
Providers usually offer payout on cover for between 12 and 24 months and you are asked to wait for between 30 and 90 days before putting in a claim after becoming unemployed. Upon commencement of the policy some providers will backdate their insurance to the first day of being unemployed. You can find out the exact terms in the small print or key facts of the cover before buying and this is something that should be compared along with the cost.
The cost of redundancy insurance will depend on your age at the time of applying for your policy and how much you wish to insure each month. All lenders will only allow you to cover up to a certain amount of your outgoings each month so when comparing the cost of the premiums also compare the terms of the cover.
Unemployment insurance to protect against redundancy can be taken out to safeguard your loan and credit card repayments if you choose to take out loan payment protection. This would give you an income that is tax-free to ensure that you are able to maintain your outgoings and so not get into debt. It will protect your credit rating and also ensure that you will not get a CCJ.
Mortgage payment protection taken as unemployment insurance would allow you to maintain your mortgage each month and so you are not at risk of losing your home. You would not have to worry about the lender threatening repossession.
If you safeguard your income on the whole with income payment protection insurance taken out as redundancy insurance, you would be able to continue meeting all your outgoings in general. This would include loan and mortgage repayments along with the smaller outgoings which means you wouldn’t have to change your lifestyle drastically.
Accident sickness redundancy insurance – don’t be a statistic!
Everyone knows that these are more difficult economic times. One of the starkest and most depressing indicators of this is the number of people seeking Declarations of Bankruptcy. According to government figures, that number rose by a frightening 12% in the first three months of 2008 alone, with analysts forecasting still further increases in the year ahead. Accident sickness redundancy insurance, however, could stop you from becoming one of those statistics.
When money is already tight, the loss of income through accident, sickness or redundancy can prove the final straw. Almost everyone has borrowed some money which needs to be repaid on a regular basis, the normal household bills continue to roll in, and savings have probably already been depleted to meet rising living costs. As a result, when incapacity or unemployment strikes, there’s almost nothing for it but the piling up of debt. If it proves impossible to manage them, then bankruptcy can loom as creditors try to call in their debts.
Accident sickness redundancy insurance is an affordable way of buying protection against this risk since it ensures an alternative regular monthly income if you are unable to work through no fault of your own. The premiums are determined by just how much monthly income you want covered.
Says Simon Burgess, of one of the country’s leading independent providers of accident sickness redundancy insurance, British Insurance: “Sadly, we’re seeing a steady rise in the number of people who are having to declare themselves bankrupt. If only more of them had taken the precaution of buying the right kind of cover before misfortune struck, it might have been possible to save significant numbers of them from such dire financial straits”.
Payment protection could be your saviour
Payment protection policies can be your saviour if you were to lose your income after becoming unemployed or suffering an illness or an accident. You would be able to claim on the policy after a fixed period of time which is stated in the terms and conditions of the policy. The payment you would receive would keep your head above water while you looked around for work or recovered after being unfit for work.
You are able to take out a payment protection policy based on your circumstances. The options are covering your essential outgoings with income payment insurance, your mortgage with mortgage protection or loan repayments with mortgage cover. All three policies ask you pay a premium each month based on the amount you want to protect and your age. This means that that the younger age group are able to make the most savings and can now afford to protect what is often a huge borrowing which stretches their budget to the maximum.
If you go with a standalone payment protection specialist as opposed to taking out the cover when borrowing you get the cheapest premiums. You do have to compare the small print along with the cost as all policies vary. Some policies pay after just 30 days while others could ask you wait up to 90 days. Policies can continue for as long as 24 months with others it can be for 12 months, while is usually adequate time. After the period of time they simply expire.
Mortgage payment protection is extremely valuable as it could mean the difference between you losing your home and keeping it. If you were to be unable to pay your mortgage and you fell into arrears then the lender could take you to court to seek possession of your home. With mortgage protection to fall back on you would have the sum of money, tax-free that you insured when you took out the policy. This would then be used to continue paying your mortgage repayments without worry.
Loan repayments along with credit card repayments could be covered by loan payment insurance and helps maintain your credit status and stops the lender from taking you to court. If you wanted peace of mind that you would have a replacement income up to so much of your own lost income then income insurance could be taken out. You would then be able to keep up with loan and mortgage repayments along with all of your other essential outgoings.
Payment protection premiums are usually based on the amount that you wish to cover and your age. An age based policy means that the younger you are when you take out the cover then the bigger savings you are able to make. With mortgage payment insurance you can also choose the level of protection you need. You might just want to take out protection for accident and sickness only. Or you could just take out cover for unemployment only. This would also help to keep down the cost of protecting the roof over your head.