Joining the workforce and starting a career is an important milestone. Job security shouldn’t have to weigh on your mind while you climb the career ladder. Many of us don’t think our jobs are at risk but everything can change in an instant.
Financial Protection From Redundancy Risk
If the worst were to happen and you were made redundant, your lifestyle will suffer a major impact. Going from two incomes down to one, or one income to nill, would put great pressure on yourself or your partner, especially since your expenses won’t decrease at the same rate.
Few employers offer redundancy packages in their contracts these days, and we often take these clauses for granted. If your employer were to make you redundant and you are lucky enough to be paid a lump sum, that will only go so far while you look for a new job - which could take time.
Redundancy cover is designed to give you monthly payments to cover your expenses. You might want to keep the kids in child-care while you job hunt during the day, or use it to keep on top of your rent or mortgage. It will give you peace of mind knowing that you can find the right job – not just any job – and the bills will still be paid. It’ll help to alleviate the financial pressure on your partner, your family and your lifestyle.
54% of Kiwi's have insufficient savings to last 4 weeks after being made redundant. (FSC Annual Review, 2013).