Insurance - redundancy insurance - information about redundancy insurance

The need for redundancy insurance

If you are in a job, even if you don't have a mortgage you need a redundancy insurance policy. Our redundancy insurance cover is available and if you have a mortgage or other loan (especially secured on property) you definitely need it. What you may not realise, however is that even without any loans you need cover because you have other ongoing expenses e.g. credit cards, gas and electricity bills etc which must be paid. The advantage of our product is that it is NOT a requirement that you have any loan before you can take out the policy. In fact you may find it better to cancel your existing policy with your lender!

Types of redundancy insurance

There are three forms of redundancy insurance

• Mortgage protection insurance - designed to pay your mortgage payments in the event of your redundancy - this policy can often be extended to include mortgage-related bills - such as endowments, life and buildings/ contents. The basic sum insured is normally paid direct to your mortgage lender so does not count as income.

• Income protection insurance - designed to provide additional cover in the event of your redundancy - the payments under this contract are paid direct to you and may be counted as income should you be close to income support.

• Loan Protection insurance - designed to cover your loan repayments - this policy is normally arranged for a specific period and should include life and critical illness as well as redundancy, accident and sickness cover.

Redundancy Insurance at Portwood's

We offer all three forms of redundancy insurance - If you click here for a summary of our redundancy insurance products a new window will open. Below is a summary of terms to help you decide which redundancy insurance policy is most suitable for your demands and needs.

• Benefit Period - the period for which benefits will be paid - usually 12 months

• Excess Period - the period after suffering redundancy when a benefit will not be paid. Most mortgage protection insurance policies by default have no excess period, but one may be taken as an option to reduce the premium. We do not normally recommend a long excess period as repossession proceedings may commence after 3 missed payments.

• Initial Exclusion Period - the period from when the redundancy insurance policy is first taken out when a claim for redundancy will NOT be paid if the notification of redundancy occurs - even if the actual redundancy date is later. For income protection and loan protection policies this period is often 90 or 120 days but for new mortgages, re-mortgages or transfer from an existing mortgage protection scheme the period is much less - or may be waived altogether.

• If you would like further information about our wide range of other insurance policies then the best place to start is our home page. Click Here and it will open in a new page.

B. Portwood & Co Ltd aim to provide the insurance UK residents deserve. If you need information about our various redundancy insurance policies please contact us on 0870 7456247 and our experienced staff will be only too pleased to help you.