What is Redundancy cover?
Redundancy cover provides you with a monthly benefit for up to six months if you are made involuntarily redundant or adjudicated bankrupt.
Why do I need Redundancy cover?
Redundancy cover helps to alleviate what can be a very stressful situation. It gives you time to find a new job without worring about how you will meet your mortgage repayments or pay other bills. It also gives you the flexibility to find a job that suits you rather than taking the first job offered because you need an income.
Doesn’t the government cover me for this?
Many people mistakenly assume that the government (Work and Income New Zealand – WINZ) will take care of them if they are made redundant. While you may be entitled to some financial assistance from WINZ, it is unlikely that you will be able to afford to fund your current lifestyle, and depending on the value of your home and other assets you may find that you get very little help at all.
How long does it pay?
Redundancy cover pays for up to six months or until you start working in your new job… whichever comes first.
When I claim, how long do I need to wait before I get my money?
In most cases you will recieve your first payment one month after you are made redundant or adjudicated bankrupt, but this can vary depending on which insurance company your cover is with.
It is important to note that most Redundancy policies have a six month stand down period… meaning you cannot claim on this benefit within the first six months from when it was issued.