Planning Ahead Of Redundancy - How To Protect Yourself
Unfortunately, in any job there is always a chance of being made redundant, some more than others. It is best to plan ahead so if it happens again, or for the first time, you are more prepared. There are insurance policies that you can take out to help with the finances if the worst was to happen in the future. For unemployment insurance, you can compare policies through various comparison sites such as Compare The Market and Money Supermarket.
It is important to note when buying any type of redundancy/unemployment insurance policies, if there is already knowledge of potential redundancies happening, the insurance company may not pay out.
Mortgage Payment Protection Insurance (MPPI)
MPPI will help with paying your mortgage if you are made redundant. On average, MPPI will cover monthly payments of up to £2000 for a maximum of two years, or, 65% of your monthly income depending on which is lower. It is important to research the necessity of taking out this type of insurance. Payments per month vary depending on age and you may not need it at all if you have a large pay out from your company. However, this type of insurance can help to relieve stress by ensuring there will be finance available to continue with mortgage repayments.
Payment Protection Insurance (PPI)
PPI covers other repayments such as personal loans, credit cards and car finance. PPI can be very expensive and often unnecessary so it is important to do thorough research into whether it is likely to benefit you or not. Although plenty do choose to take out this type of insurance, PPI can often be mis-sold to many people when paying loan repayments. If you do find yourself being made redundant, but haven’t taken out PPI to your knowledge, it may be a good idea to find out if you have been paying PPI without being fully aware and therefore can benefit from it.