Redundancy Cover | Frequently Asked Questions about Redundancy Cover

Q. What financial obligations does the employer have when making redundancies?

A. Statutory redundancy pay is dependent upon certain factors such as age, the length of time you have been employed and your weekly pay. You can use the redundancy calculator to calculate the amount of redundancy pay you should expect at www.direct.gov.uk/redundancy.

As well as redundancy pay, you may also be entitled to receive government benefits. Check what benefits you maybe able to apply for at www.direct.gov.uk/en/MoneyTaxAndBenefits.

Q. How much does redundancy cover cost?

A. The premiums will vary quite dramatically depending on how extensive the policy is. A general guide is approximately £2.40 for every £100 of benefit that is required.

Q. Is redundancy cover available for people who work part time?

A. Yes. Most insurance companies will provide redundancy cover for people who work part time as long as the hours worked exceed 15 per week.

Q. Are the providers of redundancy cover regulated?

A. Yes, anyone who provides redundancy cover should be registered with the FSA. This also means that if there are any problems or complaints that have not been satisfactorily answered, you are able to proceed to the Financial Ombudsman to resolve the issue.

Q. What happens if the policy is cancelled without a claim being made?

A. In most cases, if the policy holder decides to cancel the policy there will be no refund owed or given. Before proceeding with any insurance policy ensure that you fully understand the terms and conditions.