Redundancy insurance is another name for unemployment insurance, and it will basically cover you during your unemployment period. This policy has some additional options that can be added to it to make it more universal. The eligibility includes people who have lost employment because of economic reasons, or if they are unable to work because of an injury. Additionally the people need to be actively looking for employment in order to be eligible. Most high-street banks will offer life cover but redundancy insurance is a more specialist product.
The basic redundancy coverage types are mortgage protection insurance, rental payment insurance and salary protection insurance, all of these can be combined with basic unemployment coverage to create a custom policy that will cover all the necessary expenses that one needs. Some people claim that there are some loopholes with redundancy coverage's and that people should avoid them, however this has not been proven so far.
On the other side we have life cover which takes care of your family in the unfortunate event of your death and your family being unable to cope with the living expenses. The great thing about life cover is that it offers years of financial security to your loved ones because they won't have to worry about money and accumulated debts.
There are various events that can trigger the payment of the lump sum with life coverage, namely death and terminal illnesses rank among the main reasons for receiving a lump sum. On the other hand there might be events that will exclude you from receiving any money, such as war, suicide, poisoning, etc.
Insurance companies are known for creating confusing products because they have the tendency of confusing clients and making comparison and understanding more difficult. Since redundancy is a newer coverage policy the customers are relatively uninformed about it. The questions that need some attention when it comes to redundancy cover are:
- What is understood under the term redundancy?
- How long do you have to wait until you can make a claim?
- How much money will you be receiving and for how long?
- What is the cost vs. benefit ratio?
These questions are usually not answered and the difference between redundancy insurance and life cover can be often misunderstood. This leads to bad choices when it comes to coverage policies and most people often slant coverage's even though it is their mistake to begin with, since they didn't take time to get acquainted with the policies.
David is a life insurance expert who explains Redundancy Mortgage Protection and helps consumers get cheaper Tesco Redundancy Insurance.
Article Source: http://EzineArticles.com/?expert=David_Richardson_Smith
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