Faqs on Redundancy Payment Protection Cover

What is redundancy payment protection cover?

It is basically a protective cover to pay you a portion of your salary in case you are made redundant due to injury, sickness or have lost your job due to inevitable reasons. It will not cover you in case you have voluntarily stayed away from work.

Will this payment protection cover you for your mortgage payment?

This payment protection cover will cover your mortgage as well as your credit card bills if you are unable to go to work. Some times, there is a full payment of your monthly mortgage charges paid out to you.

Why is such a policy required?

It is always recommendable to be prepared in times of any untoward incident. You may face some risky and unfortunate event such as an accident and you are crippled, you may find it difficult to manage your living expenses and timely mortgage payments, in such circumstances you will be well protected.

Will you be paid a salary in case you are on your sick leave and out of work?

No, insurance policy will let you enjoy multiple income. If you are on your paid sick leave and are out of work, you will not be paid by the insurance company. In case you have exhausted your sick leave and are on loss of pay you will be compensated.

For how long will you be covered?

This will depend on what you have mentioned in your policies while applying for it. If you have applied for a coverage up to your retirement age say, 60 to 65 years, then you will be compensated till that age.

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