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Income Insurance Protection does not cover against redundancy. It provides a monthly income benefit in case of temporary or permanent disability as a result of sickness or accident. Redundancy insurance is usually provided as an additional benefit along with Mortgage Protection Insurance .But mortgage Protection Insurance covers only mortgage payments in case of sickness or accident, but not income. Redundancy Redundancy implies unemployment .It can be due to reasons other than sickness or accident. At times of recession, redundancies are more likely. Hence people most likely to lose jobs during such times must consider the options available to protect against redundancy. An individual must carry out an assessment of his/her financial obligations and liquid assets. The goal should be to get a clear view of the period they can survive without income. For most people, being out of work for just three to six months may cause serious hardships. But in case of single individuals, a person can do without insurance since there are no dependents. However in case of married individuals, especially with children, it’s necessary to get as much cover for both life and income as is affordable. Income insurance against redundancy will provide the vital financial security for the family. An individual must assess their occupation. And determine the likelihood of losing their jobs during recession and other likely situations. They should be prepared in advance. And apply for Income insurance against redundancy. An individual cannot get Income insurance against redundancy if their employer has already initiated redundancy consultations. The employee will not qualify if this is in motion whether they lose the job or not. Even if an individual thinks there is no specific risk of redundancy or unemployment at present, he/she may consider a redundancy and unemployment insurance policy. These policies are pay out for mortgages and living expenses while a person seeks new employment .These are generally for up to 12 months. Certain insurance providers offer an Income Protection policy that has Redundancy Cover as an extra benefit. This Income insurance against redundancy benefit is payable for being unemployed but only covers those who were rendered unemployed either due to no fault or choice of their own and unexpectedly. Also the person must be actively seeking work. The benefit payment is usually per month for up to 3 months. An individual must assess similar type of polices from different income protection providers. Certain insurance providers exclude anxiety, stress, and depression, emotional or behavioral disorders as valid causes of redundancy. So they refuse Income insurance against redundancy for reasons cited as mental health. An alternative to Redundancy cover, would be saving sufficient funds in an emergency fund .This might replace the normal income in the event of unexpected periods of unemployment. It is recommended around 3 months net income which is the same as the maximum benefit offered by most income protection insurance comparison. It is a fact that an employer with greater than 15 employees should have Income insurance against redundancy cover for all the employees. So an employee of such an organization has the right to have Income insurance against redundancy.
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