Who knows?
What is the best insurance out there?
Which one offers decent cover for involuntary unemployment redundancy, like six months/one year, 75%+?
Income/Redundancy Insurance
evgpek on 06/12/2017 - 20:49
Last edited 06/12/2017 - 21:46 by 1 other user
Last edited 06/12/2017 - 21:46 by 1 other user
Comments
as far as I know, there is no such insurance that provides you sum in case of redundancy
There is insurance that covers you for everything out there, why wouldn't they make money out of redundancies? They make a fortune out of funeral insurance.
I haven't seen the financials, but I have a hard time seeing the value in this insurance unless you have extremely particular circumstances. Maybe if you are a 35yr veteran machinist who has a bunch of trade certifications specific to the motor industry and you recognise you will never find as high paying job again if you are retrenched.
But for people with more generalist skills who can realistically find another job it would have to be pretty cheap to be worth it.
Which one offers decent cover for involuntary unemployment redundancy, like six months/one year, 75%+?
This cover is worthless, often when a redundancy offer is made they make it a voluntary one at the start and offer a sweetener for people to take it and this won't cover these circumstances and even if you did meet the criteria for a claim you have to accept pretty much any job that comes along and on top of this there are heaps of conditions around the termination of the insurance once you find a job even if you don't keep it or it's part time.
Also I believe most have minimum days before they commence payout, such as 60 days; which just makes it a sham as it pretty much makes you use any assets to sustain yourself in that time.
Also I believe most have minimum days before they commence payout, such as 60 days; which just makes it a sham as it pretty much makes you use any assets to sustain yourself in that time.
Like these policies below that have optional redundancy coverage that is pretty much worthless. Far better to asses your financial situation if you think you may be facing a redundancy and putting away money, cutting costs etc.
https://www.finder.com.au/income-protection/redundancy
Am I eligible for redundancy cover?
Generally, in order to receive redundancy cover you must:
Be unemployed for a waiting period for 30 days from when you are made redundant.
You must be unemployed at the end of the waiting period.
You must register with Centrelink or a recruitment agency, actively seeking work.When am I not covered
Typically, you won't be covered if the redundancy occurs:
6 months before your policy starts your employer made you aware of redundancy occurring
Within 6 months after your policy starts
Voluntarily or if you're self employed
Due to illness or injury
Living outside of Australia
After a public announcement of reduction in staff numbers through redundancy
Due to the seasonal, casual or temporary nature of your work
Due to unlawful acts
Misconduct or suspensionsThere are a number of general insurance companies within Australia that have just introduced income cover with a feature of involuntary redundancy cover for a period of up to 3 months, which also serves as a protection plan to cover your bills for a specified period.
When will I actually be paid?
Optional redundancy cover from a general insurer sounds great in theory, and there are certainly plenty of situations where it can offer crucial financial support for Australian families. However, be warned that there are a wide range of conditions and exclusions that apply to this type of cover, so it might not be as easy to receive a benefit payment as you may hope. Some of these conditions include:The policy must have already been in force for a defined period, for example six months.
You must be able to prove that the redundancy was in no way related to your own performance.
You must be continuously employed for a defined period prior to lodging a claim.
You will need to sit out a waiting period after being made redundant before you can start receiving a benefit.
You cannot receive income from any other source while you are being paid a benefit, including from part-time or casual work.
There are limits on the benefit payment and benefit period. Most policies limit cover to about $3,000 each month for up to three months.Great post. If OP is aware redundancies might be happening or if business has announced it they won’t pay out as per advised time frames.
What is the best insurance out there?
offers decent coverBy best, you mean pay out the most with the least onerous condition? Unfortunately the cost will be prohibitive because of adverse selection (the people taking it out are likely to use it) and moral hazard (once you receive payments, you're less likely to find a job).
Of course if I pay for the insurance I should be able to use it if something happens
as far as I know, there is no such insurance that provides you sum in case of redundancy