Be Prepared with Redundancy Insurance in the UK

It seems at times that the worst of the economic crisis is behind us but then out of the blue another company will get into trouble and end up making a number of staff redundant. As an employee, you can protect yourself against this happening by buying redundancy insurance from a UK insurance company.

Protect Yourself and Your Family

There are a few options open to those of you looking at purchasing redundancy insurance in the UK. The type of cover you will look to put in place will mainly be determined by how much of your assets you own outright.

Payment Protection Insurance is designed so that if for whatever reason your income takes a big dip you will be able to maintain your loan and credit card payments for a designated period of time, usually 1 year. It can come with many names with one of the most common names in the UK market being Income Protection Insurance.

Short Term Income Protection can be purchased with a 1 year or 2 year period where an insurer will pay you a monthly income sum in the event of redundancy. The difference between this and Payment Protection Insurance is that insurers agree to pay a client 50% of what they currently earn for the agreed period of time rather than simply covering loans or bills. A person that earns £26,000 a year would be entitled to a monthly sum of £1,000 in the case of redundancy for the duration of the cover.

If you are a homeowner with a substantial mortgage then it is very much advised that you get yourself Mortgage Payment Protection insurance. Like Payment Protection policies, this type of insurance will provide monthly sums specifically toward your mortgage payments for up to 1 year. Having this type of insurance can provide huge relief in the event of redundancy.

Compare Insurance Packages

In your search for reasonbly priced redundancy insurance in the UK then you will need to shop around and compare as many policies as possible. Thankfully, there are plenty of websites with the appropriate tools available to help us do this in an efficient way.

Compare the Market (www.comparethemarket.com) and Confused (www.confused.com) are two great comparison sites which highlight the pros and cons of all major insurance policies in the UK market. Make use of these sites and get yourself covered against redundancy.

United Kingdom - Excite Network Copyright ©1995 - 2022