Redundancy Protection Insurance is often sold with mortgages, credit cards, and other loans. This form of cover is often known as Income Protection or Payment Protection. This cover provides payments when someone loses their job. Payment protection from lenders can be expensive so it pays to look at policies from independent brokers.
Redundancy Insurance Cover can help you protect either your salary or mortgage repayments if you lose your job due to redundancy. In other words, there are two types of Redundancy cover, comprising Mortgage Protection insurance and Income Protection insurance.
If you need your Redundancy Insurance to cover your mortgage, the maximum monthly benefit you are allowed to insure is 65 per cent of your normal income. You can choose to receive benefit payments after either 30 or 60 days of continuous unemployment and benefit will cease after you have received 12 monthly payments.
For salary protection the maximum monthly benefit you are allowed to insure is 50 per cent of your normal income. You can choose to receive benefit payments after either 30 or 60 days of continuous unemployment and benefits will cease after you have received either 12 or 24 monthly payments. The money received from the insurance policy should not be treated as income provided the claimant is using the insurance to pay monthly payments on a loan, credit card, mortgage, or similar agreements.
If you would like to speak to a qualified insurance adviser about the protection options available to you, please complete our short income protection form and you will be contacted shortly.