What is Redundancy Cover?

We’ve noticed a rise in questions surrounding Redundancy Covers lately, so here’s a quick rundown on what it entails and how it could work for you.

What is it?

Redundancy Cover, offered by various insurers at different times, typically provides a monthly benefit of up to $4,000 for a duration of up to 6 months. This option is commonly an add-on to Income Protection or Mortgage Repayment Cover, with a waiting period of 4 weeks. Adding this cover generally increases premiums by around $70 per month to cover up to the maximum payable amount.

Is it right for me?

The cost of Redundancy Cover remains relatively stable across different occupation classes and ages of the insured, as the associated risk is limited. Factors such as health, lifestyle, or occupational hazards do not significantly impact the cost, thereby keeping the premiums stable and the risk exposure minimal.

In summary, considering the current economic climate and its affordable pricing, this cover is definitely worth considering!