Jargon Buster - Definition of Redundancy Insurance

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Redundancy Insurance

is an insurance policy that pays out a monthly income if you are made unemployed from your employment. Redundancy Insurance policies usually pay out for either 12 or 24 months dependant upon the contract that you choose.

Typically Redundancy policies have a deferment period, i.e. an length of time before the policy will pay out. This time is typically 30, 60 or 90 days but can often be backdated to the first day of unemployment to avoid loss of earning.

Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.

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