Redundancy Insurance

Don't let the uncertainty of job security give you sleepless nights

Job's for life are a thing of the past and becoming unemployed during an overseas placement can have a far greater impact than in your home country.

In the UAE for example, defaulting on payments is a criminal offence and is punishable with a prison sentence. So what happens if you are made redundant and are unable to cover your rent cheque?

Normally redundancy insurance policies are linked to mortgages and offered by building societies as part of a mortgage package. Benefits form a redundancy insurance policy start after a deferred period and normally pay out only for a maximum of two years. They may be restricted to a percentage of earnings subject to an overall maximum.

Redundancy cover, which is also known as Redundancy Insurance, can help you protect either your salary or mortgage repayments if you lose your job due to redundancy. In other words, there are two types of Redundancy cover, comprising Mortgage Protection insurance and Salary Protection insurance.

Either way, both help you to meet your financial commitments, through regular payments under the terms of your Redundancy cover.

You can find out more about protecting yourself against redundancy by talking to a qualified Holborn Assets adviser.