Redundancy Insurance – How Can You Get Protected?

While you can protect your car, home, mortgage there are also insurance to protect your earnings in case of redundancy. It is possible to insure a major portion of your income in times of redundancy. Up to 65 percent of your monthly earnings can be protected if you take a right policy. It is the responsibility of an insurance company to provide you a suitable cover and protect your earnings against the risk of redundancy. Accident, sickness or lay offs may make you redundant and rip you off your monthly earnings.

Till you find out an alternative source of income, your insurance policy will take care of your earnings. You are paid for as long as you find another employment. It can last for a year or 24 months period.

Under what circumstances can you be made redundant:

If you have been laid off due to economic down turn or low performance
If you are out of employment due to sickness
If you are out of employment due to accident or injury
To be eligible you must have made all the insurance premiums
He should be a full time employee and not on contract.

These policies also cover you for income tax exemption. Remember that although this policy covers you for being out of employment it does not cover for voluntary retirement or resignation. It also does not cover if you are laid off for your misconduct. However, if you are laid off for your low performance or due to recession you can make your rightful claim.

Incase of an income protection policy, it can insure up to 65 percent of gross monthly earnings and with no meaningful maximum limits for most workers. Policies usually have a minimum term of 5 years and some plans can run up to a maximum age of 70 years.

Kirthy Shetty, Expert author, platinum status. Get all your free tips related to: Redundancy Insurance

Get more information on: Income Protection for Unemployment