Should Fergie have considered unemployment insurance?

The financial woes of the Duchess of York plastered all over the press highlight the financial difficulties that many people at all levels of society find themselves in these times of austerity.

Debt is a real stress for many who are struggling to pay their bills and have a constant nagging fear about losing their job – and with it go the car and home because they can’t keep up the repayments without a wage.

Easy credit was available for too long to many people who were simply living beyond their means.

If you are one of them and have a partner and family to support, you should seriously consider redundancy protection insurance.

Most policies cover the mortgage and other bills until the breadwinner can get a new job or up to12 months. The cover is not aimed at taking over from a salary, is a stopgap to relieve the pressure.

Lots of insurers offer redundancy or unemployment cover.

Starting redundancy insurance is easy – but you have to be in work when you sign up and most policy have a qualifying period that can stretch to 120 days before they pay out.

Redundancy protection insurance only pays out to genuine claimants and does not cover:

  • Taking voluntary redundancy
  • Resigning or walking out on your job
  • Getting sacked for dishonesty or misconduct

If you are a company director, self-employed, a casual or temporary worker, you may find restrictions in the small print mean the policy won’t pay out or will only pay a percentage of the claim, so it’s as well to check the terms and conditions before signing up.

Unemployment or redundancy insurance protects income if you lose your job through circumstances beyond your control.

If you are worried about protecting your income if you cannot work after an accident or sickness, then you can have standalone cover running alongside your redundancy insurance to give comprehensive cover.

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