Post #203049 by Kon-Hemsby on Wed, Dec 14, 2005 6:00 AM

Thought I'd share something with you that has just helped me out.

About 2 years ago I heard through a friend about redundancy insurance (Income protection insurance), so I thought I'd look into it, as I'd not heard of it before.
The deal is you can insure yourself against becoming redundant/laid off. If it happens they will pay out money monthly until you get another job.
Usually the policy is flexible and you can adjust the parameters. So the amount you want them to pay out is reflected in the level of the premium you pay them. And usually they will pay out for 12-24 months.

e.g. I wanted enough money paid to me each month to cover the mortgage costs and a couple of bills. And for it to pay out for 12 months. Roughly for every £1 I want them to pay out, I pay them £0.03 (in my monthly premium).

Obviously there are some clauses, job can't be at risk when you take out the policy etc

I've just been laid off, although hopefully I'll be back in work pretty quickly. But it's nice to have this policy as a 'safety net'. And it certainly takes the sting out of the redundancy and takes away the panic to rush into the first job that comes along.

Hope this helps someone else out.