Redundancy Insurance: Is It Important

Redundancy Insurance: Is It Important

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Redundancy insurance is also known as unemployment protection and a large number of Kiwis purchase this type of insurance every year. Dealing with involuntary redundancy can be challenging, most of the time it comes out of nowhere. No minute you’re working on an important business project, the next you’re emptying your desk. You just never know when, or who will be affected.

What is Redundancy Insurance?

Whether you are looking for the best income protection insurance available to you or a redundancy policy that offers great protection just in case you lose your job, it is important to deal with an experienced, independent broker. Redundancy insurance in New Zealand is slightly different to income protection, it provides financial security if you suddenly become unemployed and are asked to take automatic redundancy.

Redundancy insurance is quite new, it hasn’t been around for a long period. So, finding a redundancy insurance provider may be challenging, but fortunately there are several companies based in Auckland who specialise in this type of coverage.

How to Purchase a Policy in New Zealand

One of the easiest ways to buy a redundancy insurance policy is to deal with a reputable online provider. It is advisable to find an independent broker who works with multiple insurance companies, these agents can get some of the best redundancy insurance quotes because they work with numerous providers. They can easily compare prices and find coverage that is affordable for you.

You can go online and key in your details in a matter of minutes, the broker will then assess your request and contact a redundancy insurance company to see what kind of coverage they can offer. You’ll should receive a prompt email reply giving you a list of potential insurance companies you could purchase a policy from. Everything can be arranged over the phone or through email, some brokers will visit your premises if you’d like to speak to them in person about a policy.

Main Features of Redundancy Insurance

Although everyone’s policy may differ in certain ways depending on the type of coverage you get and your background history, most include features such as:

  • Payment is generally about 75 – 85% of your usual monthly income package, these payments continue for a limited period.
  • There are maximum payments limits, most insurance companies won’t pay much more than about 7,000 per month.
  • A redundancy insurance policy will always include a no-claims period, this is generally about 6 months after you’ve taken out the coverage.
  • You must be off work for a minimum of 30 days before the insurer will start to make payments.

You never know what may happen in the future, having redundancy insurance provides a safety net. You could be cruising along in your dream job getting paid a good wage when suddenly the boat sinks and you’re forced to take a redundancy package. You don’t have to be fearful of losing your job if you’ve sensibly decided to buy redundancy insurance.

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