ALL >> Insurance >> View Article
Understanding About Redundancy Insurance
Total Articles: 24
Redundancy Insurance is a form of income protection insurance where if you are prepared redundant a percentage of your usual income will be paid to you in anticipation of the payments reach the terms of your policy or you secure another job. Redundancy Insurance differs from income protection insurance as with the latter your usual income is protected if you so happen to be injured or fall ill. Many regard income protection insurance as having bigger assessment but comparing the two insurance types is a bit like comparing apples to oranges.
Very soon the identical each type of insurance has a unambiguous place in the insurance industry and it is eventually up to the potential consumer to study all policy types and dissimilar types of income insurance and decide which the best fit for his or her situation is. This type of insurance is one of the least understood insurance types and it probably one of the newest offered by insurance companies. Redundancy effectively insures a portion of your income in the case you become redundant at your place of work. If offered a redundancy package and your package is deliberate you are not entitled to claim on your redundancy insurance policy. Also if you have been dismissed from your workplace that is not classed as being made redundant and your policy will not pay out.
From insurer to insurer it can be difficult to compare one policy to another on price alone as no two policies will be similar. Even though if you bundle income protection insurance together with redundancy protection insurance you can usually get a healthy premium discount on both of the insurance types. A good strategy is to take out an insurance policy for redundancy for 12 to 24 months while at the same time self insure, after the twelve to twenty four month period you can cease your redundancy policy cover with the insurance company and continue on with your own self insurance. Bizarrely enough the self insurance strategy is less worthwhile if you only require income protection type insurance or income protection together with redundancy but self insurance for both of these insurance types should be a worthwhile deliberation for anyone looking at these types of insurance cover.
Typically policy's pay for twelve months but you probably will have to provide your insurance company proof that you are actively looking for work. You can arrange a policy which will pay you up to 24 months after being made redundant although usually such a policy will come at a premium and I would question the value of such a policy. You may also find that some redundancy insurance policies will only cover you for 6 months and this may prove more practical as the premiums are more reasonable.
Join hands with us to serve you more with our payment protection, redundancy, unemployment insurance, loan protection, credit card protection insurance, payment protection, mortgage payment protection insurance to make your dream come true.
Insurance Articles1. How To Find A Good Home Insurance Broker
Author: Jason Davis
2. What Makes Accounting Outsourcing In Dubai A Wise Decision?
Author: Fadi Khan
3. The Life Insurance Brokers London Can Help You Choose The Best Policy That Suits To Your Needs
4. Help From Insurance Adjusters For Property Insurance Claims In New Jersey
5. 3 Reasons To Take A Retirement Insurance Plan
Author: Edelweiss Tokio
6. Maldives: The Blue Lagoon
Author: Pranvi Jain
7. Everything Needs To Know About No Credit Check Installment Loans
8. Avail Life Insurance Brokers London Services To Find The Best Policy Suitable For Your Family Needs
9. Know More About Teenage Auto Insurance Why It Is Expensive But Necessary
Author: Charlene Hubbard
10. Top Reasons You May Need Funeral Insurance In New Zealand
Author: Funeral Insurance NZ
11. Critical Illness Insurance, The Way To Ensure The Safety Of Your Loved Ones
Author: Ian Nuwan
12. Insurance In Hong Kong
13. Home Insurance Companies In California And Its Astonishing Benefits
Author: caleagle Insurance
14. 3 Life Insurance Policies That Serve As The Best Tax Saving Investments.
Author: arnab Goswami
15. Multiple Employer Plans Grabbing More Attention
Author: Terrance Power