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Redundancy insurance


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I am about to start building our first home - land transfers next month about to do pre start on the build. So I have been thinking about insurance. In particular redundancy insurance.

 

I did a online assessment and it was shocking. - about $1000 a month!

 

All I want is protection against redundancy as I am able to to my job from a hospital bed and also have very good protection with the company.

 

I am a geologist, living in Perth as a citizen but working in tanzania.

 

Any advice would be helpful.

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I'd say put the money you would be spending on something like this into a seperate bank account as an emergency slush fund and screw those premiums! If you were made redundent, you'd get a pretty good pay-out anyway.

 

If you're paranoid about it, assess the amount you want paid out; don't go for full salary but just enough to cover the mortgage

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Hi

 

Redundancy Insurance in its entirety is really a General Insurance product and so speaking to an Insurance Broker might be worthwhile.

 

A Financial Planner is generally only able to offer Income Protection which covers income in the event of accident, sickness or illness.

 

There are some Income Protection policies that have some redundancy cover benefits built in however these are generally limited and cover just home loan/loan payments for a period of 3 months.

 

Regards

 

Andy

Edited by Andrew from Vista Financial
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Thanks Andy. If you can recommend any good insurance brokers I would be grateful if you could pm me.

 

Hi

 

Redundancy Insurance in its entirety is really a General Insurance product and so speaking to an Insurance Broker might be worthwhile.

 

A Financial Planner is generally only able to offer Income Protection which covers income in the event of accident, sickness or illness.

 

There are some Income Protection policies that have some redundancy cover benefits built in however these are generally limited and cover just home loan/loan payments for a period of 3 months.

 

Regards

 

Andy

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I'd say put the money you would be spending on something like this into a seperate bank account as an emergency slush fund and screw those premiums! If you were made redundent, you'd get a pretty good pay-out anyway.

 

If you're paranoid about it, assess the amount you want paid out; don't go for full salary but just enough to cover the mortgage

 

All of the guys I know laid off recently including my boss got the minimum. One months salary plus holiday pay.

 

Given that I know a huge amount of geologists unemployed and desperate for work and for most of us, our job can disappear tomorrow and take months to find another - I have mates who are senior geo's and exploration managers who have been out of work now a year, I am not going to save a back up to cover a year if I get load off in a month.

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VS, the premiums are probably an indication of the risks of the mining industry. Especially working overseas, you would expect high premiums. Have you looked at options like offset mortgages which could reduce your repayments but leave you a slush fund? Or even taking the biggest mortgage you can, then paying off a large chunk, so you can take a mortgage break if need be?

 

12000 dollars a year sounds excessive. Plus, there could always be something in the small print. You would want your lawyer to give it the once over.

Edited by newjez
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Thanks Andy. If you can recommend any good insurance brokers I would be grateful if you could pm me.

 

No problem.

 

Unfortunately I am not able to recommend any from personal experience that I have dealt with any longer. The one that we did have a relationship with has retired, perhaps a post on the Money and Finance forum for the other members to share recommendations would be the way to go!

 

Regards

 

Andy

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