Buy Redundancy Cover

Who is eligible for redundancy cover?

Different insurance companies will vary on their terms and conditions but generally the rule of thumb is;

• Over 18 years of age
• Under 60 years of age
• Reside within the UK
• Employed with the same employer for 6 months or more
• No announcement of company restructuring or redundancies

Once you have decided you are eligible for redundancy cover, shopping around for a policy is relatively easy. With the aid of the Internet, it is possible to view best buy tables which give a comparison of policy premiums for similar products from different insurance companies. Best buy tables are a great place to start as they give a good idea of what the premiums are likely to be for the type of product which may be suitable.

Redundancy cover and similar insurances can also be sourced from high street banks and building societies, although they do tend to have slightly higher premiums on some of their products.

Alternatively, it is possible to hand the job over to a financial adviser and get them to do the leg work for you, obviously there will be a charge for this service. It is also pays to ask if the financial adviser is tied to using a particular company’s product or if they are an Independent Financial Adviser, in the latter case the adviser will be able to search the whole market for the most suitable product.

Once you have selected your product there will be a few simple questions to answer. Depending how you have sourced your redundancy cover you might be required to complete forms online, answer questions over the telephone or meet with your adviser to discuss the application, they will normally then do all the required paperwork on your behalf.

Before finalising the agreement it may be worth revisiting the policy to ensure you fully understand all the terms and conditions. Below are just a few examples of questions you may like answered before proceeding with the policy.

• How old is the policy before you are able to make a claim?
• What is the procedure if you did need to make a claim?
• Once made redundant, how long before the benefit pays out?
• How much are the premiums?
• How much is the benefit?
• How long does the benefit pay out for?
• What happens if the policy is terminated without making a claim?

see our free PDF guides here

Guide Contents

Redundancy Cover
Finding the best redundancy cover
Buy redundancy cover
Frequently asked questions about redundancy cover
Where to get more help about redundancy

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