Question
What is the best Redundancy Insurance in New Zealand?
Answer
Redundancy Insurance pays a fixed dollar amount for a period, as a results of being made redundant.
- By Willi Olsen
- Updated 7 April 2022
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Unfortunately, job security seems to be a thing of the past, and nobody is indifferent to the threat of redundancy. Many businesses in New Zealand are having to downsize due to the COVID-19 pandemic.
What is Redundancy Insurance?
Redundancy cover, often called unemployment insurance, provides extra protection in case you’re made involuntarily redundant.
You can claim up to two times under the Redundancy benefit. You must be employed full-time for six consecutive months before you are eligible to make your first claim under this benefit.
Many insurance companies and banks have stopped accepting new applications for redundancy cover since the outbreak and the New Zealand Government wage subsidy schemes were introduced.
Many mistakenly believe that by getting income protection insurance, they’re automatically covered for involuntary redundancy (i.e. dismiss from employment, through no fault of their own).
That is not the case.
Is Redundancy Insurance worth it
Redundancy Insurance in New Zealand is an optional Income Protection or Mortgage Protection add-on benefit (rider).
Redundancy Insurance Key Points:
- Benefit payout is maximum $4,000 per month
- Pays for maximum 6 months,
- Stand down period: You must have had the policy for minimum 6-month,
- after a 30-day waiting period that begins on the date you became redundant.
How to find the best Redundancy Insurance?
We can help you compare income protection insurance quickly and easily, and find solutions that meet your budget and needs.
Government Funded Unemployment Benefits
Work and Income (WINZ) may provide financial assistance if you are made redundant and can also help you with retraining or finding another job.
Have you been made redundant?
Mariska du Preez, career coach from Journey2Discover says “sometimes when people are made redundant, it is an opportunity to transition into a new career, maybe something you are more passionate about”