Fool.co.uk warns about redundancy insurance

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Fool.co.uk warns about redundancy insurance

Wed 15th Oct 2008

Workers are being warned by finance website Fool.co.uk about redundancy insurance.

As more people face unemployment due to the recession, they may feel the need to take out such cover, which is also known as unemployment insurance.

But Fool.co.uk warns that such insurance policies can be expensive and misleading and may not pay out when needed.

They generally cover only job loss through compulsory, not voluntary, redundancy and work must be actively sought as claims are made.

Furthermore, claimants may need to wait for 30 to 60 days before they receive any money and might also have had to have been in six months continuous employment beforehand.

David Kuo, head of personal finance at Fool.co.uk, recommended income protection insurance or putting aside enough money for three months or more.

In relate news, the Department for Work and Pensions (DWP) has pledged an extra £100 million to help unemployed people.

Measures available include skills training and practical jobhunting advice.

The DWP also said that there are over 600,000 job vacancies across the country.

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