Redundancy Insurance is available to most people who are not at notice of impending involuntary unemployment.

A pre-agreed amount can be covered, usually up to 50% of your gross earnings, with benefits on claim being paid directly into your bank account; tax free under current HMRC rules.

Cover can be arranged for loans, mortgages, or simply your income. In the event of a valid claim, benefits are normally payable for a 12 month period, during which time; you must simply be registered for Jobseekers Allowance (contribution or income based).

Redundancy Insurers will all include a set deferred or initial exclusion period which you must wait before claiming on the protection; however if you have cover with another insurer and want to switch, some Redundancy Insurers will waive the initial deferment period before a claim is allowed. This “switching” feature is particularly important to those who have been sold expensive and difficult to claim on Redundancy Insurance Policies sold by the Banks.

If you have purchased a Redundancy Insurance through a lender, review the cost/benefit to make sure that you are not paying too much, for a policy that you cannot claim on.

As with all Redundancy Insurance Policies, read the Key Facts and policy conditions carefully to make sure that the Redundancy Insurance cover is suitable for your employment situation.

And finally; use the internet to save money.