Anyone that is working on a full time basis and who has mortgage, loan or general outgoings to pay could benefit from taking out redundancy insurance. Policies can be taken to cover mortgage repayments with mortgage payment protection, loans with loan payment protection and income with income payment protection.
If you need peace of mind that you would have the much needed money to be able to continue meeting loan, mortgage and all other essential outgoings then consider taking out income payment protection insurance. With this policy you would be able to insure up to a certain amount of your own income each month and then have no worries if you are made unemployed.
You would not have to worry about the mortgage lender sending out letters warning that you are in arrears and risk losing your home if the lender takes you to court to seek repossession. You would also not have to scrimp and scrape to continue paying the mortgage by missing other bills or juggling them around. You would also not have the added stress and anxiety that this would cause and which would hinder your job search.
You would also be able to continue paying as normal any other outgoings each month. If you have loan repayments to keep up with or credit card bills then you would not have the worry of keeping up with these. Your policy would provide the money so that you can repay these and not worry about the lender taking you to court or in the case of having secured the loan on your home of the lender choosing to repossess.
All other bills such as heating, lighting and food bills would also be able to be maintained as would any other bills that kept the home running smoothly each month. You would be able to relax with peace of mind that you would not be stressed financially and concentrate on finding suitable work again.
Redundancy insurance with standalone payment protection providers begins to pay after a deferment period and then pays out for so long. Usually providers ask between 30/90 days before claiming and then payout for between 12/24 months with one payment each month. After this period of time the policy would just cease paying out.
Income protection taken out as redundancy insurance is just one form of protection. If you do not want to cover your income in general then you could also look at the other options for unemployment cover. Mortgage payment protection is an excellent choice for those who just want peace of mind that their mortgage repayments would be covered each month.
You are able to take out protection solely for redundancy, or you can choose to take out incapacity by such as illness or accident only. You are also able to take out protection to safeguard against the possibility of accident sickness and unemployment together if this would be more suitable. If loan repayments or credit card outgoings are your main worry then look into taking out loan payment protection to cover unemployment. This would just cover those repayments and you just need to insure the total amount of your repayments, up to the limit set by the provider.
Simon Burgess is Managing Director of the award-winning British Insurance (http://www.britishinsurance.com), a specialist provider of low cost income payment protection insurance (PPI), mortgage payment protection insurance (MPPI) and loan payment protection insurance.
Click here for more articles from ZingArticles.com