Redundancy Cover: How Can Income Protection Insurance Help One?

Income protection policy becomes handy when one becomes unemployed temporarily on the grounds of illness, accident, or injury. This plan covers about 75% of one’s gross annual income. Very few companies provide a redundancy cover. This cover provides monthly income pat benefits in the event of involuntary job loss or redundancy. This type of income protection insurance can offer permanent or temporary benefits. The premiums will also vary depending on policy duration.

Depending on the insurer, the extent and duration of coverage can be 12 months or more. Coverage that covers for more than 24 months attracts higher premiums. There are certain criteria, depending on your jurisdiction and the policy provider that must be met for one to become eligible for this plan. Issues to do with residence, age, type of employment, and terms of employment will be considered.

One can apply for this plan via the internet or even over the phone. You can receive coverage within the same day.  The amount of coverage is independent of the amount one earns. Usually, 75% of your income will be covered. In the event that the policy hold passes on, all the benefits will go to the family as a single lump sum payment. Other benefits that most insurers offer include funeral, benefit, carer’s benefit, and expatriation benefit.

When looking for income protection insurance NZ, it is important that you look for a cover that offers redundancy coverage. This way you will benefit more from your policy.