In an uncertain job market, redundancy insurance can provide a crucial safety net. When you’re a homeowner with a mortgage this cover ensures you can continue making payments if you are unexpectedly made redundant.
What is Redundancy Cover?
Redundancy insurance is an optional add-on to income protection insurance. If you lose your job due to redundancy, this policy can help cover essential expenses, such as mortgage repayments, giving you financial stability while you search for new employment.
Key Things to Know About Redundancy Insurance
✔ Waiting Period – you can make a claim only after six months of having started this cover. This means you need to plan ahead and get covered before you need it.
✔ Payment Duration – The policy typically pays out for up to six months or until you find a new job, whichever comes first.
✔ Industry & Job Stability – Once job losses become widespread, insurers may decline new applications for that industry.
Why Should You Consider It Now?
Many people wait until they hear about layoffs before applying for redundancy cover—but by then, it may be too late. If you think your job is secure now, it’s the best time to apply.
