How to Prepare for a Redundancy with Redundancy Insurance

In today's difficult economy, many businesses cut down their workforce in order to save costs, especially on salaries. A common tactic from employers is to reduce costs by making staff's jobs redundant. Thus, it helps to be prepared if you feel that your current position in the company may lead to a redundancy. Below are some ways to do this:

Redundancy Insurance

Redundancy Insurance will pay a monthly amount of $2000, $3000 or $4000 for 6 months (premiums are higher for higher levels of cover). Redundancy Insurance does not cover acts of voluntary redundancy or if you quit your job. It is designed to help you pay your bills, such as mortgage/rent and living expenses, while you are looking for new employment if you are made redundant.

There are different forms of Redundancy Insurance. Some forms can only be taken if you also have an income protection insurance policy that covers sickness and injury and others are stand-alone.

Other things to consider:

Once you have been made redundant, it is a good idea to use a site that provides a great career toolkit to help you be reemployed as soon as possible. Such a resource will enable you to build an up to date resume.

When you suddenly find yourself involuntarily unemployed, it is vital that you get yourself together and find a new job as soon as possible; otherwise your human capital aspect will begin to depreciate in the eyes of employers.

When writing your resume, remember to follow the tips in the career toolkit to highlight the skills and qualifications that are essential to the position you want. Such a resource will also help you identify your skills and present them in a way that is appealing to employers.

Save for a rainy day. You will never know when you might lose your job due to a redundancy. However, one thing is certain: you will have bills to pay whether or not you are employed.

If you believe you are at risk of becoming redundant, it pays to start saving.

Financial experts say that you need to have enough savings to help cover your basic needs for at least 6 months-whether you need more or less depends on the kind of lifestyle that you have.

If you are interested in taking our redundancy insurance then you can find out more about this by seeking the help of our consultants at Rate Detective.

We will then talk through with you the products that are available to you from our panel of insurers.

Get your quotes now

What to find out more? Enquire now

Published on September 9-th, 2012 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

More on this topic

Enquire about Insurance

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.