• New Redundancy Insurance fills industry gap in coverage available as employment insecurity grows

    Posted on 27 October, 2015


    The innovative product, Income Security has been developed to help protect Australians against the financial stress and uncertainty that comes from losing a job.

    Involuntary unemployment can cause serious financial difficulties to families’ lifestyle but there are few ways to protect against this. Some Loan Protection insurance products cover loan repayments only in the event of redundancy – but these payments are made direct to the lender.

    So how does an unemployed person pay for all their other bills and living expenses such as rent, electricity, gas, water, rates and school fees? Income Protection policies are designed primarily to protect against sickness or injury only.

    The answer is Income Security Insurance coverage which offers coverage for involuntary unemployment. Monthly benefits are up to 85% of income with a maximum benefit available of $7,000.

    The Claim benefit is paid directly to the insured person so they can decide how the money is spent. Maximum cover periods of up to 3, 6 and 9 months are available. There is a choice of waiting or excess periods from 30, 60 or 90 days so that the cost of the cover can be reduced by opting for a longer waiting period if, for example, there are savings to draw on, or a large redundancy payout would be received.

    The policy premiums are generally tax deductible like income protection and up to 3 years cover can be purchased in one transaction.

    Conditions apply to this policy such as not all occupations or industries/employers are eligible for the cover because of their higher risk factor which would otherwise force premiums up for everyone. There is also a three month qualifying period at commencement of the cover before a claim can be made. Applicants also need to have an existing loan or Income Protection coverage to qualify for Income Security Insurance.

    Donnellys is an authorised distributor for this Income Security Insurance policy which complements Donnellys Lifestyle Protection Insurance coverage for extended Sick Leave as a result of injury or sickness.

    Call Donnellys on (08) 8236 7777 to arrange a quotation for Income Security Insurance

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