When you have no savings to bank on, no additional earnings and your main source of income has ceased to exist, what can you do?

Your employer may pay you for a month till you have some paid leave in your account. Beyond this, you will be deprived of any monthly earnings. What about the payment on loans, credit cards, debt, mobile bills or other expenses. It is a great risk to think of this doom’s day when you have lost your job or are unable to go to office.

The risk factor would be more for a self employed as he has no employer to pay him for his paid leave. Nor will he be protected by the employer’s health insurance for an employee. He will be deprived of all the employee benefits provided he has a separate health policy in place. To avert this risk whether you are an employee or run your own business and are facing some disability, met with an accident or bed ridden, you must apply for Redundancy protection insurance. For a self employed redundancy is not applicable, he must cover himself under an income protection insurance.

This can help you pay back your mortgage and other bills too if you are laid off. It takes time for you to find another job and till you get another source of income you take benefit of this protection cover. Be wise and apply for a redundancy protection cover so that you don’t have to face financial crisis and continue to have your 3 square meal at peace and meet your other expenses in a relaxed manner!