A guide to Redundancy Insurance and Sickness Insurance

Article published on 6th July 2009

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We live in troubled economic times and we are all more than aware of how our jobs can be secure one day and at threat the next. The culture of a job been for a lifetime has all but disappeared and these days it is important for us all to protect our much needed income against the threat of redundancy or us becoming to ill to work.

Accident, Sickness and Redundancy insurance provides a package to protect against the two most likely events that could disrupt our income, namely involuntary unemployment and sickness (either due to an injury or because of an illness).

Redundancy Insurance

This area of the package will pay you a monthly income if you are made involuntarily unemployed by your employer. Depending on your income, the cover can pay up to ?2000 per month for up to 12 months whilst you look for a new job.

With the income form the policy you can continue to make your mortgage repayments, pay your utility bills and put food on the table for your family.

Redundancy Insurance must be taken before you are aware of any impending redundancies at your employer so its better to take cover whilst you still can rather be left high and dry after the event. Policies must also have been in force for a certain period (known as the initial exclusion period) before a claim can be made.

Exclusion periods vary greatly from insurer to insurer and can range between 30 days and 120 days! The lower the exclusion period you can find, the better! For many people having a policy which can't be claimed on for 4 months is a complete waste but if you have savings that will sustain you for this amount of time, the savings made on premiums could make this an option.

Some examples of exclusion periods are shown below:

Insurer Initial Exclusion Period
Synergy 30 Days Click to get a quote
Ant Insurance 90 Days Click to get a quote
Post Office 120 Days Click to get a quote
Assurant 120 Days Click to get a quote
GISecure 120 Days Click to get a quote

Redundancy Insurance premiums are based on the amount of cover you require and sometimes your age. Unlike other insurance policies, gender and smoker status are not usually used as a factor to work out your premiums.

Sickness Insurance

Sickness insurance works in a similar fashion to the redundancy package but this time will protect you against being unable to work because you are ill or have been injured.

Unlike with the unemployment insurance there is no initial exclusion period so the policy will protect you immediately.

With these policies you need to be off work ill for a certain period of time (known as the waiting period) before the policy makes its first payment to you. These waiting periods can vary between 30 days and 120 days using with the option to backdate to day 1. The waiting period can affect premiums with policies that offer a longer waiting period usually working out slightly cheaper.

Most people opt to take a thirty days backdated to day one policy which means they can make a claim on the 30th day of their illness receiving a payment which is counted from day one.

Named or Unnamed Brand

Unlike with some other insurance policies such as life insurance or home insurance, Sickness and Redundancy policies are not always presented under a well know household name.

Companies such as Synergy and GISecure may not be household names but there products are amongst the best of the market for both terms and conditions and for price.

In a lot of cases policies offered by non-brand names are underwritten by a well know insurer such as AXA or Aviva.

In any case all policies are covered by the financial ombudsman so whichever policy you decide to take, you are protected by the financial services watchdog.

How do I get the cover?

Redundancy Cover and Sickness insurance is available from a wide range of providers and you can get an instant quote from our accident, sickness and unemployment quote page. Quotations come in three forms namely Mortgage Payment Protection, Income Payment Protection Insurance and Loan Protection.

Click Here for an Instant Competitive Redundancy Insurance Quotes

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