Redundancy Protection
Imagine waking up one morning and realizing, you don’t have to go to work today? While this maybe a happy feeling for some who have to resume work after the holiday, there are several others who get shivers down their spine, realizing that they have been laid-off, for no fault of theirs, it can be very depressing to accept the fact that there will be no source of income for an indefinite period of time. This is not just an imaginary situation; it is very relevant in today’s economy, when instability prevails in every sector and organization.
Of course, the employer may give the amount of paid leave in the account, but once that is exhausted, there will be no monthly earnings and one would have to struggle to pay recurring expenses like food and home rent, phone bills, loans, credit card debts and so on. Hence it is always better to be prepared to face dooms day than skipping a few heart beats when the day actually arrives.
These trying times are much more difficult for those who are self-employed, because he does not have an employer who will reimburse his paid leave and give the other benefits. To avert this, one must apply for redundancy protection. A self employed redundancy is not applicable, and he must cover himself under income protection insurance.
Why should one apply for redundancy protection? This is because, since it takes time to look for another job, when the source of income is ripped off, this helps to pay back one’s mortgage and other bills.
How this works is that, it is insurance in the form of an income payment scheme, which ensures that one would be paid each month by the insurer, which can help him to cover his outgoings. It is a good way of securing one’s income in a scenario where everyone is loosing their jobs.
This policy is not only for those who are doubtful whether their employers would pay them incase they are laid-off; even a self employed person can protect himself by taking a self employed redundancy policy. Redundancy policies can be taken not only in case of loss of job, but also to protect oneself incase of sickness, injury, accident etc, which makes them incapable for some time to be able to work for a certain period of time.
Thus these come as breathers when there is a sudden lay-off or injury which affects the earning ability of the employee and ensures regular earnings at intervals of time so that it can reduce the burden of the person who is already trying to deal with his loss.
