Many of our customers often ask us what the difference is between income protection and redundancy insurance, and although they go hand in hand, they are not the same thing.
The world of Redundancy Protection Insurance can be confusing to navigate. But it’s essential that you do it right – your survival and wellbeing could well depend on it.
That’s what happened to Jeremy Walton. The company he’d been with for nearly a decade restructured three years ago. While they were appreciative of his contribution, they saw no way to bring his role into the new business structure. This was completely out of the blue and hit hard. Thankfully Jeremy had had the foresight to take out a Redundancy Protection Insurance policy a few years before this. He and wife Nicole discussed where to from there and made some minor adjustments to their lifestyle. Their relief was huge knowing their redundancy insurance cover maintained their mortgage repayments. Their bills were also covered for the 6 months that it took Jeremy to find another role that he felt was right for him.
The results of a recent survey of 1000 New Zealanders gauge their attitudes toward income insurance are far from stellar.
Intended to check whether any progress had been made on a $650 billion underinsurance problem identified in 2013 by the Financial Services Council, the Trade Me study showed very little change four years on: While 88% had vehicle insurance and 74% had home insurance, only 51% had life insurance and just 41% health insurance.