Mortgage Protection Insurance UK

For anyone in work, the most unwelcome piece of news is likely to come in the shape of a notice of redundancy. For anyone in work, with a family to support, a mortgage to pay, and a home to run, it is going to be far more than unwelcome and probably little short of a tragedy. The good news is that tragedy can be averted quite readily and surprisingly cheaply with redundancy insurance.

A form of income payment protection, redundancy insurance pays out to the policy holder a regular monthly sum for as long as he or she remains unemployed as a result of involuntary redundancy. The benefits can therefore be used as a replacement income, allowing the policy holder to stay on top of all the household bills until alternative work is found. There is a limit, of course, to the duration of such payments (typically 12 or 24 months depending on the type and cost of the policy), but is generally quite long enough a period within which to find and secure a new job.

It is difficult to stress just how critical redundancy insurance can be. Of course, the first news of impending unemployment is bad enough, but it is when the bills need paying that the potential for serious damage begins to sink in. If the mortgage is not paid, then sooner or later the home is at the risk of repossession. If the utility bills are not paid, then credit agency reference files will be adversely rated. If things go on like this for more than a couple of months, there is the prospect of action in the county court to secure judgment against you for the debts. It is by no means alarmist to see redundancy as the beginning of the slide towards such serious problems with debt that even a declaration of bankruptcy beckons.

To state the rather obvious, therefore, redundancy is a very serious business. Given the potential implications and pitfalls which lie ahead for anyone receiving such a notice, the knowledge that it has been covered by adequate redundancy insurance will be a lifesaver.

“A notice of redundancy is never going to come as welcome news to anyone” says Simon Burgess of one of the leading payment protection providers in the business “but at least redundancy insurance will take the sting out of its tail and allow you to keep you and your family’s financial heads above water until a new job can be found”.