Jobs for Life – A Thing of the Past

In general terms, the UK economy is buoyant.  We are not currently in recession and many companies are making handsome profits. There are, however, very large concerns over how Brexit will pan out, the impact of online sales on the Highstreet, an increasing rise of robotics in many job categories and a changing employment market that are all fuelling the possibility of job losses in the near future. As people consider their careers there has been a rise in those seeking unemployment cover as they plan ahead.

Also known as redundancy insurance, Unemployment Protection Insurance is a specialised cover that supplies a short-term income should you be unable to meet your monthly commitments through involuntary redundancy. It can be used to protect things such as your income, mortgage payments, rent, loans and credit card repayments so that you don’t end up in financial difficulties because you have been made redundant.

These flexible policies generally let you choose how much you receive as a monthly benefit, on the understanding that you can typically protect up to 70% of your gross annual income for a fixed period Any pay-outs will normally be tax free giving you breathing space while you look for new work. You may have the option of protecting P11D benefits such as your company car and private health insurance, all of which cab be adding quite considerably to your income.

Will the Government help out if you become un-employed? The question is really “Will they help out enough?”. Job Seekers Allowance is £57.90 per week if you’re under 24, £73.10 if you’re over 25 and £114.85 for couple where both are over 18. There may be some additional benefits depending on your circumstances but, for most of us, not nearly enough or often, fast enough, to keep us out of incurring further debts from losing a job through no fault of our own.

Interested? If this has caught your attention, consider how much you need to insure. The amount of benefit you receive will obviously affect how much you’ll pay each month. The lower the amount you insure the lower the premium so it’s important to think of what you need to pay your bills rather than maintain your lifestyle. It makes sense to pay to protect your mortgage or rent, your council tax and utility bills rather than weekly take-aways and cinema trips.

If you ever worry or lose sleep over what would happen if you faced involuntary redundancy*, Grange Mortgages and Protection Services Ltd is a specialist insurance broker, here to help you. We’ll review your circumstances in detail to make sure you have the right insurance, at the right price, so that payment is guaranteed to be made if you need to claim. There are many factors that will affect how much you pay, and we’ll take them all into consideration, so that we can let you know how much the cover will cost and make sure it’s affordable. Call us on 01604 667217 to discuss your requirements.

* Unemployment insurance cover cannot usually be used for circumstances other than those where you find yourself unemployed through no fault of your own. If you take voluntary redundancy, decide to resign, or are dismissed, you will usually not be able to make a claim as it is seen as being an issue that you were in control of.