Redundancy Insurance Cover Australia
Traditionally high levels of job security and long-term employment are now much less common for people working in every industry and sector. No one is able to predict the future, but that doesn’t mean you aren’t able to protect yourself from misfortunes that may come your way. Protecting yourself and your family from future negative economic developments in the economy makes sense, especially if you have pressing or ongoing financial commitments such as mortgage repayments, credit card charges and educational fees.
In coming months, Lifebroker will be offering comprehensive and affordable redundancy cover. With instant cover options, extended opening hours and simple processes, access to redundancy insurance will soon be a reality for all Australians.
What is Redundancy Cover?
Redundancy cover pays a monthly benefit of up to three months if you become involuntarily unemployed, or up to six months if you are unable to work because of sickness or accidental injury. These benefit payments are intended to help you cover basic necessities and meet any pressing financial commitments whilst you are looking for new, full-time employment.
Redundancy cover also allows you to tailor your policy to suit your specific needs by allowing you to choose between $500 and $2500 of cover per month.
There aren’t very many companies in Australia who will offer any sort of redundancy protection insurance at the moment, but Lifebroker can offer it if you already have a loan through Commonwealth Bank or ANZ. This sort of redundancy cover comes as part of an income protection policy that also covers for accident and sickness.
Under some existing income protection policies, your premiums may already be waived if you become redundant for a time. If you're not sure whether you need redundancy cover on top of your income protection, give Lifebroker a call and we can talk you through it.
What are the Benefits of Redundancy Cover?
Involuntary redundancy is not covered by income protection and there is a very clear distinction between the two options for cover.
Unlike income protection insurance, redundancy cover is not meant to function as an income while you are temporarily off work because of illness or injury. Instead, redundancy cover functions as a last line of defence if you lose your job. For optimum coverage, we recommend that you apply for both redundancy and income protection.
Whether you’re raising a family, meeting mortgage repayments or are looking to buy a property in the near future, redundancy cover gives you and your family peace of mind about these important commitments, no matter what lies ahead.
Who Should Get Redundancy Cover?
Redundancy cover is suitable for Australians in the workforce aged between 18 and 60 years of age and can be renewed up to age 64.
Those wishing to make a claim for Redundancy Cover must have registered themselves as unemployed with CentreLink or an equivalent government authority or must be able to provide satisfactory evidence of unemployment.
It is important to remember that your Redundancy Cover claim will not be honoured if your employment is terminated due to self-inflicted injury or suicide, criminal or illegal activity, or for failure to adequately perform your occupation due to a pre-existing or recently developed mental-health disorder.