A new standalone redundancy policy has been launched to fill a gap left by traditional income protection and loan protection policies.
Recent analysis by the Weekend Australian on 25th April 2015 revealed 1.2 million Australian workers did not expect to be with their current employer in a year’s time and of these 20% said they feared being made redundant. The problem facing these workers is how to find the money to pay for the bills that continue even when you are unemployed e.g. gas, electricity, telephone, groceries, school fees and rent or mortgage costs.
Consumers may mistakenly believe they are already covered for involuntary unemployment. But most income protection policies are designed to cover loss of income due to sickness or accident, not involuntary unemployment. Also while some loan protection policies may pay a redundancy benefit, the amount will usually be limited to loan repayments and will be paid to the lender not the insured person.
Income Security Insurance
The new redundancy policy, called Income Security Insurance, provides extended coverage for involuntary unemployment with cover periods of 3, 6 or 9 months available. Up to 85% of monthly income can be covered up to a maximum of $7000. Premiums are tax deductible like the premiums for income protection policies.
It only takes 5 to 10 minutes to obtain a quote and apply online on the website www.incomesecurityinsurance.com.au. Certain eligibility criteria apply.
The policy is underwritten by Avea Insurance Limited, a general insurer with over 30 years’ experience. For more information see Redundancy Insurance Protection.