Redundancy Cover Insurance – How to Protect Yourself Against Financial Uncertainty?
Redundancy cover insurance policies are essential for most employees. Every year, thousands of workers in all sorts of industries are made redundant. This can come about as a result of businesses downsizing, restructuring, outsourcing work overseas, embracing automation or simply closing down. No matter what the reason, an involuntary redundancy can be a tough thing to have to deal with, especially if one hasn’t had the foresight to take out redundancy insurance.
Are you prepared for redundancy?
To make matters worse, a redundancy often takes people by surprise and they find themselves unprepared to deal with the situation. As a result, they are left facing the very unpleasant, often frightening reality of not having a reliable income to cover life’s necessities for what could be a very uncertain length of time. In the meantime, however, while they struggle to find a new job, expenses pile up.
Of course, no-one wants to find themselves in a situation where lack of proper preparation for the possibility of a redundancy forces them to have to take drastic action, such as selling the family house and undoing years of hard work, simply in order to survive.
Is it possible to protect yourself against unexpected redundancy? The short answer is yes – by taking out involuntary redundancy insurance beforehand.
Do you need redundancy cover insurance?
Although none of us can see into the future or know what tomorrow will bring, one thing we can all be sure of is that most of us have to keep working in order to earn the income we need to be able to pay our bills, including the mortgage payments on our homes, and feed and clothe our families.
So, how then can we protect ourselves against loss of income in a world where job security has become a thing of the past? While one cannot downplay the negative impact of redundancy, there are things you can to protect yourself if such an event should happen.
For example, preparing for the unexpected loss of your job can be as simple as:
Starting an emergency savings fund. Having some savings to be able to deal with the proverbial “rainy day” can make a huge difference if you are suddenly faced with the prospect of a redundancy. Financial experts suggest you need to have enough savings to be able to cover your basic financial needs for at least three to six months.
However, even having a smaller amount of savings will go a long way to easing the pressure so you can focus more effectively on getting a new job. So, if you believe you are in any way at risk of being made redundant, it will pay to start a savings plan as soon as you can.
Taking out involuntary redundancy insurance. Also known as redundancy cover insurance, taking steps to acquire involuntary redundancy insurance cover will round out your preparation for being able to deal with unexpected redundancy. The first step in taking out redundancy cover insurance is to ask one of the insurance broker specialists at Ease Insurance for a redundancy insurance quote.
How to prepare for a redundancy with redundancy cover insurance
Redundancy cover insurance is not to be confused with income protection insurance, which generally covers partial loss of income from being unable to work due to illness or injury.
Instead, redundancy cover insurance offers financial protection in the case of involuntary redundancy as a way to help you meet your financial obligations while you are looking for new employment. In other words, redundancy cover insurance does not cover you if you take voluntary redundancy or if you quit your job or are fired.
Like most insurance products, redundancy cover insurance has other qualifying requirements too, such as specific stand-down or waiting periods. Also, redundancy cover insurance has to have been taken out before any redundancies at your company have been announced or are even rumoured to be on the cards. To have an informed discussion about all the qualifying conditions for redundancy cover insurance, simply talk to one of the insurance broker specialists at Ease Insurance.
Get your redundancy insurance quote before it’s too late
If you feel your job is one that could be vulnerable to future restructuring or outsourcing, or any other scenario that could result in an involuntary redundancy, then take steps now to protect yourself and your family from financial uncertainty.
Contact one of the insurance broker specialists at Ease Insurance about redundancy cover insurance. We’ve made it simple and easy to compare redundancy insurance quotes from a number of New Zealand’s leading providers of insurance against redundancy, and can help you choose the right cover for your particular situation. Contact Ease Insurance today!