Redundancy insurance could be your lifeline by providing you with an income to replace your lost one if you should lose your own income due to being made unemployed. Redundancies frequently happen and they can happen from out of nowhere. If it happens to you then you could have problems finding the income to pay your mortgage, general outgoings and any loan repayments that you have to make each month. By taking out a policy with a standalone provider you are able to ensure that you would an income coming in each month.
What you chose to insure would depend on what you have to payout each month. If you have mortgage repayments to make then consider mortgage payment protection. If you are worried about maintaining loans then choose to cover the repayments against unemployment with loan payment protection. If you want to make sure that you would have the money to service all your general outgoings including mortgage and loans, then look at taking out income payment protection.
All policies work on the same principal. You go with a standalone specialist provider and get a quote which is based on your age at the time and how much of your repayments you wish to cover. This amount is how much your repayments are each month up to a certain amount. The sum you insure against is the amount you would be given if you were to claim on the policy. This income would come to you as a tax-free sum and you could use it to pay the repayments you had covered.
Redundancy insurance would begin to payout once you had been unemployed for a certain time on a continual basis. Some providers ask that you remain unemployed for at least 30 days and with others it can be 90 days and then you are able to put in your claim. When starting to payout you would then get the income every month for a certain time. Providers usually offer policies that will run for 12 months while others can offer protection to payout for 24 months. You are able to find out the terms of any cover you are considering taking out by checking out the small print. All providers should also offer plenty of information and advice regarding the policies they sell so you can be sure which policy is suitable for your needs.
Keeping up with your mortgage repayments even while unemployed is essential. If you just fall behind on your mortgage by a single payment your lender will get in touch with you. If you cannot show that your financial problems are only in the short term and mortgage problems persist then the lender will have no choice but to start proceedings against you. Mortgage redundancy insurance can put an end to all your mortgage worries which allows you to go out and search for work. The same would apply to loans as you would not fall behind into debt and of course if you had your income covered you would not be worrying about everyday bills.
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