Financial website Fool.co.uk has warned potential customers for redundancy or unemployment insurance, to be on their guard as pay-outs are subject to very restrictive criteria and as always it is advisable to read the small print before taking out any insurance product.
As unemployment grows dramatically on the back of the financial crisis, many people will be looking at such insurance to offer cover should the need arise.
Like the notorious payment protection insurance, policyholders can pay dearly for the cover only to find their claim rejected when the worst happens.
Some of the things worth bearing in mind when choosing this type of policy are:
- Redundancy insurance will only pay out on compulsory redundancy
- Claimants must actively seek work during period of claim
- Claimants must have been employed continuously for 6 months prior to claim and held policy for 120 days
- Payments will generally start after 30 to 60 days after redundancy or unemployment
- Claimants already aware of iminent redundancies should read the small print and proceed with caution
1 comment so far
1 arizona auto insurance // Oct 21, 2008 at 1:08 am
I sell insurance in the U.S. and have seen this type of insurance advertised, though I’ve never represented one of those carriers. I find it a bit odd of a policy. There must be limits for how long benefits pay, why else would someone seek new employment.