If you were to be made redundant then you would still have to meet your essential outgoings such as your loan repayments, mortgage repayments and the cost of everyday living. If you want to insure against this possibility then you can take out redundancy insurance in the form of loan payment protection, mortgage payment protection or income protection insurance. You can take out a policy just to protect against coming out of work through redundancy or you can take out additional protection to cover accident, sickness and unemployment together.
Mortgage payment protection insurance (MPPI) would give you an income to make sure that you could continue to repay your mortgage repayments and so make sure that you would not lose the roof over your head by getting behind on your mortgage repayments. Loan insurance would give you the money to continue meeting your loan repayments and not get into debt and income protection would ensure that you had enough money to continue with your lifestyle and pay your essential outgoings.
There is a waiting period before you can claim on all redundancy insurance policies and this will vary from provider to provider and can be anywhere between the 31st day and 90th day of being continually out of work. Some redundancy insurance policies are backdated to the first day of becoming out of work and would then continue to payout for every month you continued to be out of work for up to 12 months, though some policies offer cover for up to 24 months.
You do have to make sure that a redundancy insurance policy would be suitable for your needs as there are exclusions which can stop you from being eligible to make a claim and these include only being in part time employment, being of retirement age, suffering from a pre-existing medical condition at the time of taking out the policy.
A standalone provider is the best place to get quotes for the redundancy insurance cover. They not only offer some of the cheapest premiums but also give advice that is needed so that you can ensure a policy would be suitable for your circumstances before you buy.
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