What is Redundancy Insurance?

Redundancy cover is one easy way to secure peace of mind about your income. Whilst the government offers job seekers allowance to unemployed people in the UK, the benefit amount often falls short of the money they were earning when they were employed. Redundancy insurance cover helps prevent you struggling financially if you are made involuntarily redundant.

Redundancy protection will pay you a monthly income if you are made redundant through no choice of your own. This income is tax free and can be spent however you choose, whether that means meeting rent payments or covering the cost of bills. Redundancy protection insurance can also be tied to a particular debt or loan such as your mortgage or your credit card.

How does Redundancy Protection work?

With redundancy insurance cover, you pay monthly or annual premiums to your insurer. Often redundancy protection is taken out alongside accident and sickness cover. Should you be made involuntarily redundant, your redundancy insurance policy will start to pay out after an agreed period of time, called the waiting period.

Redundancy cover will usually protect up to 65% of your income with a maximum amount of £2,000. This maximum sum will vary depending on which insurer you choose. Unlike other income protection policies, redundancy protection will only pay out for a maximum of 12 months, even if you don’t find a new job within this time.

What does Redundancy Cover cost?

The cost of redundancy protection insurance depends on a variety of factors, including things like your age and your smoking status. Unlike long term income protection, redundancy insurance cover premiums can be increased by the insurer with just 30 days’ notice to the customer.

Our Redundancy Protection Insurance Comparison

Whether you are looking for redundancy insurance as a standalone product or alongside accident and sickness insurance, we will provide you with quotes from a wide range of insurers to find you the best price. Simply provide us with a few basic details and we will offer you free, no obligation redundancy protection quotes from across the market, which you can buy immediately for quick financial security. In addition, one of our expert advisers can explain the terms and conditions surrounding redundancy protection insurance to ensure that you are clear about what you are purchasing.

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