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Redundancy Insurance

You will find that Redundancy Protection Insurance is normally sold with loans, credit cards and mortgages and is often referred to as Income Protection or Payment Protection. This type of cover will provide you with payments when and if you lose your job. Payment Protection can often be expensive so it pays to hunt around and look for quotes from independent brokers.

What is Redundancy insurance? Well, Redundancy insurance? Cover can help to protect either your mortgage payments or your salary should you be made redundant. This means that there are effectively two types of Redundancy cover; either Mortgage Protection Insurance or Salary Protection Insurance. Whichever you decide, both will help you with your financial commitments through regular payments under the terms of your Redundancy cover.

If you are going to use your Redundancy insurance to cover your mortgage, then the maximum monthly benefit you are allowed to insure against is 65% of your normal income and you can choose to receive your payments after either 30 or 60 days of continuous unemployment. Note though that benefit will cease after you have received payments for 12 months.

If you are going to use your Income Protection insurance then the maximum monthly benefit you are entitled to insure is 50% of your normal income. Like the Redundancy Insurance cover you can decide if you want to receive the payments are 30 or 60 days of continuous unemployment but, unlike Redundancy Insurance, benefit payments will cease either after 12 or 24 monthly payments

Note that the DSS should not treat the money you are receiving from your insurance policy as income providing you are using your insurance money to pay for loan payments, credit card payments, mortgage payments or any other similar agreements.

Whatever you decide to do, you should be able to shop around and find the best deal for you as well as to be able to tailor the terms to suit your needs.

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