NB: this datasheet talks about the UK insurance market, but I’m sure other countries have something similar.
What is it: it’s basically a policy designed to pay you a monthly fixed sum of cash every month for up to 1 year while out of work because of redundancy, sickness , disability etc.
How much can you get: you can insure up to 90% of your take home pay , so after tax if you get 2k a month you can insure £1800 of that.
Why bother : well in my industry redundancy happens all the time. In most companies you can sniff it out , i.e. company looking to sell , sales figures looking bad.
When to take it: take it when you have a bad feeling something might happen, you need the policy to vest for 90 days before you can claim, you need to have been working full time for 6 months. I’ve taken out policies twice now, once 3 yrs ago when my boss gave me a heads up on cuts, the time passed, we started to hire again so I cancelled. The second time the company was looking to sell, and I got laid off after the sale.
How much : it’s cheap IMHO – for a 2k policy its around £50-60 per month. You can take multiple policies as 2k is normally the max as long you only go to 90% of pay..
I’ve taken a year off to travel, trade and do cool stuff essentially being paid and not having to dip into savings too much. Luckily my rent was fairly low , my car paid for and I don’t have any debt so outgoings are low.
Downsides: they make you sign on at job centre every 2 weeks, so I would time my trips for 3 week stints. Called in sick one time , said I was camping in the UK another time just to move my sign on date by a week. You can have 14 day job centre holiday in UK only. You should make friends with your Job centre advisor, will make your life a lot easier.
You need to send insurance company evidence you are going for interviews etc. I am looking for a job so have been to many, just not taken any yet, obviously they don’t need to know that.
My policy is 2k a month, so 24k in total pay out , I paid in about £1200 over the two years I had it . I only wished I had insured myself for a lot more, but alas I never really thought they would get rid of me ..
So if you think you maybe made redundant , sock up on insurance , then travel the world for a year while being paid :- )
What is it: it’s basically a policy designed to pay you a monthly fixed sum of cash every month for up to 1 year while out of work because of redundancy, sickness , disability etc.
How much can you get: you can insure up to 90% of your take home pay , so after tax if you get 2k a month you can insure £1800 of that.
Why bother : well in my industry redundancy happens all the time. In most companies you can sniff it out , i.e. company looking to sell , sales figures looking bad.
When to take it: take it when you have a bad feeling something might happen, you need the policy to vest for 90 days before you can claim, you need to have been working full time for 6 months. I’ve taken out policies twice now, once 3 yrs ago when my boss gave me a heads up on cuts, the time passed, we started to hire again so I cancelled. The second time the company was looking to sell, and I got laid off after the sale.
How much : it’s cheap IMHO – for a 2k policy its around £50-60 per month. You can take multiple policies as 2k is normally the max as long you only go to 90% of pay..
I’ve taken a year off to travel, trade and do cool stuff essentially being paid and not having to dip into savings too much. Luckily my rent was fairly low , my car paid for and I don’t have any debt so outgoings are low.
Downsides: they make you sign on at job centre every 2 weeks, so I would time my trips for 3 week stints. Called in sick one time , said I was camping in the UK another time just to move my sign on date by a week. You can have 14 day job centre holiday in UK only. You should make friends with your Job centre advisor, will make your life a lot easier.
You need to send insurance company evidence you are going for interviews etc. I am looking for a job so have been to many, just not taken any yet, obviously they don’t need to know that.
My policy is 2k a month, so 24k in total pay out , I paid in about £1200 over the two years I had it . I only wished I had insured myself for a lot more, but alas I never really thought they would get rid of me ..
So if you think you maybe made redundant , sock up on insurance , then travel the world for a year while being paid :- )
