Redundancy Accident Insurance

Redundancy Accident Insurance

We’ve all been there – working away in a job we actually enjoy for a change, and then suddenly, there’s either a restructuring, or a downturn in business, and we’ve been made redundant. It can be a pretty devastating feeling, and none more so than if you have a mortgage and you don’t know how you’re going to make the next payment.

Or you’re driving your car, and suddenly someone’s driven into you, and your injuries are sufficient enough to keep you in hospital for a prolonged period of time, and even when you get out of hospital, you’re faced with months of physiotherapy. Again, if you have a mortgage to pay, this can add to your already burdened mind.

However, if you take out redundancy or accident insurance, or even both, at least these problems are something less for you to worry about, as your mortgage payments will be met by an insurance company for a set period of time.

Redundancy Insurance

Redundancy insurance (also known as redundancy cover, or payment protection, or income protection insurance) is something well worth taking out when you buy a home. After all, the job market is such a fickle thing, and the news is constantly full of the latest large-scale redundancies nationwide as another car plant or call centre closes down.

If you happen to lose your job, and you have redundancy insurance, your chosen insurer will give you a tax-free amount each month for up to 24 months (although the most common is 12 months). This can obviously pay your mortgage, or any other loan that you may have. As long as you have been out of work for more than a 30-day period, and you meet the other criteria that each policy has, you should be eligible for the cover to take effect.

Accident Insurance

Something else that you can pretty much guarantee between now and when you retire (and even after) is that you will be involved in at least one accident. Whether it’s at work, driving in your car or even at home, the possibility that you have an accident that stops you from working for a prolonged period of time is quite high.

Having accident insurance will help negate the financial problems that this could cause. Much like redundancy cover, if you’re unable to work for 30 days or more, then accident insurance cover will pay you a set amount each month, again usually for a period of up to 12 months. This offers tremendous peace of mind, especially since accidents do happen, and especially when you least suspect or need them.

If you really want to have the best of both worlds, then you should take out a combined accident and redundancy policy, such as a full mortgage protection plan. This will not only cover you for accident or job loss, but long-term illness too, and even disability due to illness or an accident. For more information, check with your insurance provider, who can advise of what the best cover for you would be.