A safe pair of hands
Redundancy Insurance, also known as Unemployment Insurance or Mortgage, Loan or Income Protection Insurance, is designed to provide the claimant with a pre-agreed monthly sum, in the event of an income being lost due to redundancy.
The Redundancy Insurance policy effectively replaces a proportion of that lost monthly salary for up to a year – making it one of the most effective debt management tools around.
The majority of Redundancy Insurance policies (around 80%) are sold via High Street banks and building societies, alongside the offer of a loan. These businesses have a vested interest in ensuring the money they’re lending is repaid, so their policies primarily cover the monthly repayment costs of any loan, such as a mortgage.
Whilst this ensures continuity of a mortgage or smaller loan repayment, it doesn’t provide the claimant with the financial means to meet any other bill commitments such as utility, council tax or grocery costs. Nor does it help those in shared-ownership schemes or renting.
Similarly, credit card providers offer Redundancy Insurance to their customers to ensure payment continuity of the monthly credit card bill, should an income be interrupted. However, this doesn’t help claimants meet their wider bill commitments.
Because they have a point of sale advantage, policies purchased via lenders and credit card firms are often far more expensive and restrictive in their cover than those on offer from independent Redundancy Insurance providers.
Such is the extent of the anti-competitive practices found to be followed by those with a monopoly position that the Competition Commission has published a series of Remedial Measure Recommendations which are due to come into force shortly.
In the meantime, it’s left to the independent providers, such as British Insurance, to develop an all-inclusive, competitively-priced product portfolio that will benefit more consumers in the event of financial hardship.
And with news of job losses a regular occurrence, the need to have a mechanism in place to pay bills in the event of redundancy has never been greater. This is why British Insurance endeavours to make its policies accessible and affordable for all.
British Insurance was the first to extend its cover to include the millions of people in shared ownership schemes or renting. It argued that those on lower incomes, in social housing, shared-ownership schemes and renting, could be financially more vulnerable and therefore in greater need of a financial support product. This move was welcomed by Housing Associations and the National Landlords Association.
British Insurance also introduced carer cover, financially supporting people who give up work to care for a family member for up to a year. This socially responsible approach was applauded by the charity Carers UK.
In contrast to other players in the sector, British Insurance Income Protection Redundancy Insurance will replace a percentage of lost salary, regardless of the bill commitment. This means claimants are not restricted to using their insurer payments to settle one particular monthly bill such as a loan or credit card. Instead they can receive up to £1500 per month, subject to the terms of the policy, tax free, to maintain payment continuity of what in their opinion, are the most pressing bills.
This insurer-supplied ‘income’ can be used to cover housing costs (mortgage, rent etc), credit cards and loans, utility and council tax costs and other household bills. Given the Job Seeker’s Allowance will barely cover the cost of a weekly food shop, British Insurance is acutely aware how its policies will provide a financial lifeline to people when they need it most.
British Insurance products are market-leading not just because of their inclusive criteria, but because they are accompanied by outstanding support services. As well as offering back to day one payouts, age-rated premiums and a choice of cover options.
British Insurance believes its cover maintains emotional as well as financial well-being during what can be a very stressful period. It gives peace of mind by ensuring continuity of income, protecting savings and avoiding a build-up of debts.
Recognised as a’ safe pair of hands’, British Insurance is financially sound with a reputation for fairness and integrity. British Insurance is trusted and respected because it has the expertise, experience and contacts to be able to offer policies that advocate inclusion, rather than exclusion.
