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In the current economic climate a redundancy insurance plan will become more relevant. However, to find a redundancy insurance provider to provide a redundancy insurance quote can be tortuous as the providers of a redundancy insurance plan are normally not well known. Therefore, probably one of the easiest ways to begin looking for a redundancy insurance provider is via the internet. You will have the option to go direct to the provider or through a broker. The latter can be beneficial in that you will be able to discuss your own personal situation and source cover accordingly.
Redundancy insurance providers have their own set of terms and conditions and it is advisable to always read these at the time of obtaining your redundancy insurance quote; the terms and conditions can vary between each redundancy insurance provider. However, your redundancy insurance plan will have some basic requirements that will be similar from provider to provider, such as:
- Situations where a company will pay or not pay - for example, a claim may not be valid unless you have been in the same employment, continuously, for 6 months or more.
- Eligibility criteria generally you have to be entitled to claim job seekers allowance (public funds)
- Exclusion period - a period of time from the start of the plan that you are unable to make a claim, normally about 3 months.
- Deferred period an agreed period of time that you are required to be redundant before you can put in a claim for example, 30 days back to day 1.
- Definition of redundancy when you lose your job due to closure of the company or cut backs are being made or your job is no longer available. A claim will not be payable if you are unemployed due to being between contract work or are dismissed from employment due to misconduct or poor performance.
The basis of your redundancy insurance quote can be mortgage or income related though the provision of the different types once again depends on the provider; the majority will do mortgage related. To obtain a redundancy insurance quote you will initially be required to provide some basic information:
- Date of birth
- Occupation
- Income
- ortgage payments
Redundancy insurance cover providers, for a mortgage related plan, will cover your mortgage and related costs as long as they do not exceed 65% of your income. Otherwise, as with an income related plan, you will only be able to have cover up to 65% of your current income.
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