Redundancy Insurance

Redundancy insurance cover is something that you arrange for the protection of your financial situation, if you are unexpectedly made Redundant or have financial issues with your business.

In this world of uncertainty, it is important that you have in place insurance that is going to work for you. We have been receiving queries about Redundancy Insurance Cover, and have investigated the providers available.

We have outlined the Asteron cover below, with some information on how it works.

The Redundancy/Bankruptcy Mortgage Protection insurance provides:

  • A monthly benefit if you are made redundant or bankrupt (but only paid when you are confirmed bankrupt)
  • 6 month stand down from application – so get in now as you won’t be covered for the first 6 months.
  • Maximum of 6 monthly claim payments for any one event
  • 30 day wait period for the first payment after you are made redundant
  • Benefit expires at age 65
  • Eligibility – employees aged 16-59 years inclusive
  • Mortgage Holders or rental tenants
  • Maximum of 2 claimable events – must be 12 months apart. You must be employed for 12 consecutive months before you are eligible to make your second claim.
  • Choose either 40% of your income as a benefit or 110% of your mortgage repayments.
  • Benefit can be between $500 – $5000 a month depending on your mortgage situation

There is no medical underwriting for this cover. Please note that this cover only covers redundancy or bankruptcy, not illness or ill-health situations.

Other features:

  • You are paid the money at claim time so you can apply the money to whatever you want.
  • Employees can be covered for up to 40% of your income up to $5000 per month or if you have a mortgage, 110% of your monthly mortgage repayment if the mortgage is on your primary property. Applications for more than $3,500 per month, must be supported by proof of mortgage. All applications must show proof of income such as a pay slip or employer letter.
  • Monthly benefit paid in advance up to 6 months (payments) at a time.
    Insurance benefits such as death or disability cover can be added if required with no offsets at claim time, evidence of health will be needed accordingly.
  • Better suited for employees than self employed, self employed must be adjudicated bankrupt before a claim may be paid.
  • Premiums not age based, therefore do not increase as you get older.
  • To apply, it is quite simple, you need to fill in some questions on an application form. If there is discussion in the public arena that your company may be down-sizing, then cover may not be available. Otherwise, it should be quite straightforward to put this insurance cover in place for you.

What do I need to be aware of?

Your Redundancy insurance policy will only pay out when you are made redundant:
1.Your premiums are paid and up to date.
2.You have disclosed everything relevant at the time that you apply for the Redundancy insurance cover.