Key Questions To Ask When Choosing Redundancy Insurance

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In the current job market, job security is no longer guaranteed. You may have worked for a company for many years and suddenly be faced with involuntary redundancy.  It doesn’t matter what position you hold in a business, anybody can be made redundant at any time in their career, that’s why it is so important to select a good company and purchase unemployment cover.

Here are some key questions to ask when dealing with an insurance company.

Do I have to visit your offices before purchasing cover?

If you are buying redundancy insurance in NZ, you shouldn’t have to leave your home. There are several first-class insurance brokers who offer redundancy insurance in Auckland that can be set up over the phone or through email. You don’t have to waste time travelling down to their premises, you can get a quote online using their website and if you’ve any questions you can call a company representative or communicate your query via email. Some insurance companies can even send a broker to your home and discuss a policy in detail if required.

What qualifications does their staff hold?

If you are planning on taking out a new policy, you’ll need to speak to a company employee who has experienced and knowledge of the industry. They should be registered as financial advisors and their number should be on display at their website. You should communicate with a trained staff member if you wish to compare redundancy insurance from multiple companies, they’ll be able to assist when choosing a policy which is right for you.

Do they deal with multiple insurers?

To find the best quote, it is vital that the broker you contact deals with multiple insurance companies. If they do business with numerous insurers, they should be able to find you an affordable policy. When making a redundancy insurance comparison, they’ll have a large pool of organisations to choose from.

How long will I receive redundancy payments for?

This period varies depending on the insurance company you deal with, it is important to contact a specialist broker and discuss your options. They’ll have a much better understanding and they’ll be able to find an insurer who offers the most advantageous cover. In most cases, you generally start receiving payments after 1 month and most providers will cover you for about 6 months while you are unemployed.

Some insurance providers offer up to 45% of your previous income, but you must have a job for at least 6 months after you’ve bought a redundancy policy. If you lose your job 2 or 3 months after taking out a policy, you won’t be covered under the contract.

It is important to ask as many questions as possible before deciding to buy redundancy insurance. You should make a list when communicating with a broker, so you know exactly what they are offering, they’ll compare prices from multiple insurers and find you a policy which best suits your needs.

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