How can I prepare for redundancy?
Unfortunate but true! Anyone can be made redundant in this time and age! Technology has helped in many ways and getting older does not help either.
Younger and more technically savvy employees are always on the way. The truth is it can be unexpected for most, but the reality is that we all know it can happen and what can be done to be prepared?
Well the most important thing one can do is to ensure that they have savings enough to see them through for 4-6 months. It does not take a lot to get into a job unless recession hits like 2008! With the way the economy is going it may be looming over us already! Unfortunately, We; the common folk get to know about it in the end; generally when its too late.
What if we come to know about this through a letter making us Redundant! Well that definitely takes the wind out of the sails!
What can be done!
There is an insurance product or rather a feature called REDUNDANCY COVER. There are a few companies that offer this product along with the banks.
So what does redundancy cover do for you? Simple it gives you the cash you need for 6 months that you need before you can get into another job. It’s not a lot of money when you look at the numbers, but then when someone is just been made redundant… its a life saver.
Here’s the thing,
You can’t get the cover started if you know you are going to be made redundant!
So if you plan to act on getting insurance for redundancy one fine morning when you get that letter you have been dreading, even I cannot do anything for you.
Let’s look at it practically,
- what are the odds of such a thing happening to you?
- Do you have the money saved up?
- Are you in a position that you can get a job anywhere?
- How long will you be able to manage your finances if you are two income family?
If the above question does not paint a favourable picture then you fall in the category of people who are waiting for the shoe to fall off!
The good news is that we can do something about it. Let me make it clear, its not a cheap option but if things are not looking bright at the moment then it is not worth trying to manage this risk when we come to the cross road.
How does it work?
Once you are made redundant you will get an official letter from the employer stating that you have been made redundant. This letter is enough to make a claim to get your first instalment of monthly cover.
Now most of the companies require you to provide some evidence that you have made an attempt to secure a job before they pay the next employment. Mostly this means that you have been applying for positions or going for interviews etc.
The maximum any company will pay a monthly instalment is limited to 6 months or till you get a job whichever is earlier.
For people who have been moved by this and want to act, call me on my details below. For the ones who feel secure but need to just get a second opinion please email me or meet me on Zoom.
Toll Free: 0800456427