INSURANCE

Income Protection Insurance Redundancy

Income protection insurance redundancy cover does not exist, and this is for several reasons. The point of income protection insurance is to provide cover for those who might fall ill, or become injured or disabled in an accident. Redundancy will never be covered by income protection insurance because you were laid off or dismissed from your job. Since income protection insurance redundancy cover is non-existent, it is a good idea to avoid redundancy if you can and still get the income protection insurance that you need. As you review your income protection cover quotes, it is extremely important to keep in mind that income protection insurance redundancy cover is not an option. Even if you have purchased income protection insurance and have been paying for it for years, redundancy will not be covered by your insurance.

If income protection insurance redundancy cover did exist, imagine how many people might take advantage of this. Redundancy leads to unemployment, but either at the employer's or employee's choice, not by chance, as with an accident or illness. If redundancy was covered under this type of plan, people could quit their jobs on a whim and live off of their cover for long periods of time, fully taking advantage of insurers. Having income protection cover is for people who realise that they are always at risk of falling ill or having to take time from their jobs because of injury, not people who wish to move from job to job as they please with comfortable breaks in between.

Getting Laid Off

Unfortunately, there are instances where an employee is laid off after years of service to a company, not to mention the years they have been paying for income protection cover. This is an instance where income protection insurance redundancy cover might come in very handy, but being laid off is simply not covered. Although this might not seem fair to some people, it is the way this cover works and there is nothing to be done about it. However, there are government assistance programs which can help the unemployed regardless of their reason for being unemployed, but many people will not be able to live off of this assistance alone. As much as income protection insurance redundancy would help out, it will not be covered, which will often encourage the laid off employee to get another job as quickly as possible.

Imagine that you have worked for a railway company for years and have been paying for cover for several years in case you injured yourself, as working the railways can be hazardous. After 10 years of work, the railways are not being used as much for freight or passenger transport and your employer calls a meeting to inform you and the rest of your co-workers that there will be a layoff. You are surprised, but you do not think for a moment that you will be a part of that. After all, you have given so much to this company, and your boss knows that you have a family with young children to support with the salary you make there.

Sure enough, to your greatest surprise, after a week, you are laid off along with a handful of your mates. You are angry and feel betrayed, but you also understand that the company cannot support the salary of everyone there due to less railway use. You feel that you are alright financially to afford some time in between jobs with your savings, but you decide to try to cash in on your cover you have been paying for.

Your cover company explains that income protection insurance redundancy cover is not an option, even though you were unfairly laid off. At this point you are angry about the loss of your job, but you are also upset that the cover you have been paying for will not help you in this instance. You have found that income protection insurance redundancy cover is not an option for you and you now must hurry to find a new job. Luckily, there is a job opening at a competing railway company for a maintenance position and after a month of going through your savings to support yourself and your family, you are hired and are making better money than ever.

A Happy Ending

This is a happy ending to a story of redundancy, but it does not always end this way. Be sure you understand your cover before you purchase it. With the right insurance, you can protect yourself from losing money if you fall ill or injure yourself, but income protection insurance redundancy cover does not exist, so do not count on it if you lose your job or are laid off. Get the cover you need to protect from illness and disability, but make sure that you understand exactly what the cover pays for under specific circumstances.

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