Redundancy Cover: Is It Worth The Cost?

By Author: Shourya Ray Chaudhuri
Total Articles: 598
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In the last few years, we have seen a staggering number of people losing their jobs. Just in 2009, the jobless count has reached 2 million and the numbers keep on rising. On top of that, rising costs of mortgage, gas and other utilities have risen up. Stress levels are very high and even people who have secure jobs can lose them due to the stress and anxiety caused by modern living. The rest of those other workers can suffer accidents that can render them incapacitated to work. Is it going too far? Sadly, no. This is reality happening right now and it is important to be secure when issues happen. You have to make sure that you get an unemployment cover. However, some question if such a cover is still relevant for some people nowadays.

Insane prices:

With all the prices and cost of living increasing by the hour, the prices of redundancy cover premiums have also increased. The numbers have risen to a staggering 40% in the past few years. Current numbers appear to be higher still. For some policy holders, they are faced with lesser options than before. In the past annual premiums are being implemented. However, nowadays, ...
... the payment methods are done monthly in most companies and it could rise considerably within a month or so. It is a real worry for some but for others, it is worth the spend if they can be covered in the future.

The catch:

For some, changing their redundancy cover provider might be a viable solution. The thing with that is the waiting time before the claim can be made. Usually, it is between 30 day to 12 months. Imagine if you change the providers: you will be back from ground zero and there is no assurance if you will be able to reach the end of the waiting period before something happens. If you already started out with the payments on one company, you might want to try keeping your payments consistent since you already invested not only money but also time.

Real risks and issues:

As much as it is very easy to get a redundancy cover, it is hard to fit into the very specific requirements of the insurance company when it comes to what kinds of claims are included and excluded. As much as we want to use the benefits, some of us are not able to get the benefits that they want. However it is also necessary to look in to detail the coverage of the insurance. You need to review what is covered and what is excluded. It is not because you should get sick to get the benefits that you paid for in the past. You need to know if it covers a wide range of claims and so if you have an accident, depression and even illness, will it be able to address your needs while waiting to recover and work? Do you need a separate cover if you decided to do voluntary redundancy?

Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Redundancy Protection Insurance
Get more information: Accident Sickness Unemployment