Redundancy Cover or Unemployment Cover
Redundancy cover in New Zealand, often called unemployment insurance, is a form of income protection that can pay out if you lose your job.
Redundancy cover is linked to Income Protection Insurance which is an optional benefit.
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.
What would you be covered for?
Depending on your policy, your benefit could be tax-free or not. The benefit is typically paid after a 30 days waiting period.
This type of insurance is often used to protect mortgage repayments, income or loan repayments, or your wages.
How can I get redundancy cover?
Redundancy Cover and Financial hardship benefits
Below are some Life Insurance companies and the features they offer in case of redundancy: