A new redundancy insurance product has been launched with the aim of addressing the redundancy insurance gap that currently exists.
The standalone insurance product, called Income Security Insurance, is underwritten by general insurance provider Avea Insurance Limited and can provide monthly benefits of up to 85 per cent of income, with a maximum benefit of $7,000.
According to product distributor Income Security, the redundancy protection product can be of benefit to an adviser or broker losing income from other products due to clawbacks when a policy is terminated because of unemployment.
Cover periods of up to three, six and nine months are available to clients and payments go directly to the insured person.
Income Security managing director and founder of the insurance product, Wally Ripper, said the product can be offered to existing clients who already have either an income protection policy or a loan.
The insurance provider added that the quoting and application process is fully online and people can apply and pay for their cover via the income security website with no medicals and no paperwork.
“The premiums are generally tax-deductible like income protection and up to three years cover can be purchased in one transaction,” a statement from Income Security said.