Redundancy insurance plans-shop around for the cheapest quotes | mortgageprotectioninsurance's Blog

If you want to take out protection to guard against the fact that you could be made redundant and lose your income, then there are ways of doing so. There are a suite of redundancy insurance plans that for a monthly premium can providing they have been purchased correctly, provide you with a monthly income which is tax free.

Payment protection insurance (PPI) plans pay out once you were out of work for 30 days or more and as is the case with the some providers, be backdated to the day you came out of work. A good policy would continue to provide you with an income for up to 12 months and there are policies offered by some providers will pay out for up to 24 months. The cover, if bought from the wrong course, can be an expensive addition to an already over stretched budget. This means that in order to get the lowest quotes for the redundancy insurance plans you have to shop around for the cover.

These payment protection insurance plans come in different forms and one form is income protection insurance; this means that if you were to lose your income through becoming unemployed (ie being made redundant), then the policy would replace your income up to a fixed amount every month. This money could then be used to pay your essential outgoings each month until you got back on your feet. Along with being made redundant you can also take additional cover to protect against loss of income through accident and sickness; or for accident, sickness and unemployment.

The insurance can also be taken out to protect your monthly mortgage repayments. As your mortgage is one of the biggest monthly outgoings a good policy when bought correctly could mean the difference between you losing the roof over your head and keeping it.

You can also take out redundancy insurance cover to safeguard any loan and credit card repayments and policies taken out to insure against this are called payment protection insurance. Mortgage and payment protection are usually offered at the time that you take your mortgage or loan but this is the most expensive way to purchase your policy. Very little information is often given regarding the product when purchased from the high street lender and this has meant that policies have been sold in the past regardless of the persons needs. The high cost of having peace of mind that a policy can bring has also been one of the product’s main downfalls, but this too can be avoided by shopping around for the cover and going with an independent provider.

While redundancy insurance plans can give peace of mind, it isn’t a suitable product for everyone, there are exclusions within policies that could mean you would be ineligible to claim should the time come and for this reason it is essential that you understand there are limitations with the products. Protection insurance plans can work to your advantage and peace of mind can be bought cheaply, but you have to shop around for the cheapest quotes and understand the pros and cons of a policy and this you can do by going to an independent provider for the cover.