|
There are a number of different ways that we can financially protect ourselves against various eventualities that may affect us in our lifetime, income insurance redundancy is just one. These forms of protection become more important when we have financial commitments to meet each month and family/dependants that are reliant on our income. We then have to consider how we will manage should our regular earnings be interrupted due to accident/sickness or unemployment. Income insurance redundancy can take a number of different forms; redundancy alone or has it is commonly referred to by insurers unemployment cover or with accident and sickness built in. Primarily, income insurance redundancy will provide a monthly benefit should you be made unexpectedly redundant. Additionally, if you have accident/sickness built in, for example illness and redundancy cover, it will pay out should you be off work due to an illness or accident.
Regardless of which type of plan you should decide to go for, be it illness and redundancy cover or redundancy alone, the benefit amount allowable is worked out on a similar basis. The illness and redundancy cover or redundancy protection can either be mortgage related or income based. The most common form of a redundancy plan is mortgage related. Redundancy insurance cover for mortgage benefit is aimed to pay your mortgage and associated costs to a maximum benefit of 65% of your gross earnings. Whereas an income based redundancy plan is based upon your gross income and once again allows you to cover up to 65% of your gross earnings.
Redundancy cover for mortgage can also be available to tenants, i.e. people that live in rented accommodation. Therefore, you should not be put of by the term mortgage. If you live in rented accommodation and can provide evidence of the rent you pay then you can cover the same costs under a redundancy cover for mortgage as some one with a mortgage.
Should you be considering redundancy cover for mortgage you will need to explore the market as not all companies will offer redundancy cover alone. A lot of the insurers that offer redundancy do so with accident and sickness built in which obviously you will pay more for than just redundancy itself.
|
