Am I - Redundancy
Redundancy Insurance Policies
Often sold with mortgages, credit cards and purchases, 'Income Protection
Plans' or 'Payment Protection Plans' etc are insurance policies
that offer payments when someone loses their job. As with all policies
it is worth reading the small print with care. If you have already been
made redundant it may be worth while checking your existing policies
for mortages and credit cards to see if you are covered. Payment protect
can be expensive so it pays to look at alternative policies.
As with all insurance policies it is important to be absolutely honest
in answering the policy questions. Yes - it is a relevant piece of information
if your company has announced redundancies!
Impact on State Benefits
The money received from the insurance policy should not be treated
as income by the DSS provided the claimant is using the insurance to
pay monthly payments on a loan, credit card, mortgage, or similar agreements.