Military redundancy insurance
When you’re in full-time employment with the British Army, Royal Navy or RAF, it’s hard to imagine being out of a job.
But if you did get made redundant, it could hit you hard. As a strong, active person, the sudden change to your life could leave you feeling down. And losing the structure of the military could also take its toll.
Imagine if you had to deal with a big reduction in income to boot. How would you pay your bills and mortgage? If you’ve got a family, how would they cope with living on a lot less? Money stresses can quickly spiral into marital strains.
What is military redundancy insurance?
Military redundancy insurance (sometimes known as military unemployment insurance) pays you a monthly benefit if you get made redundant from your job in HM Armed Forces.
The policy begins to accumulate benefit after your chosen deferred period and continues to make regular monthly payments until either you return to work or reach the maximum benefit period – which is determined at the start of the policy, usually as either 12 or 24 months.
Unemployment insurance plans can provide a tax-free monthly cash injection that can be used to help you manage financially in the event of involuntary unemployment.
The policy typically begin to pay out after a set period of time – typically from 30 to 90 days after redundancy begins, giving you peace of mind in knowing that you’re still receiving an income even when yours has ceased. You can choose how to spend your payout, but here are some things it can help to cover:
- Mortgage payments
- Credit card debt
- Loans e.g. if you’ve paid for your car with credit
- Children’s educational needs
- Household costs – repairs and bills
- General day-to-day living costs such as food, clothes and transport
Who is military redundancy insurance for?
Military redundancy or unemployment insurance may be available to any employee of HM Armed Forces – whether you’re British Army, Royal Navy or a member of the RAF. Policies should be available to all military personnel, regardless of age and rank.
If you find yourself unemployed, getting help from the state can be tricky due to eligibility issues. Also, the amount of state unemployment benefit available is rarely enough to cover the typical living costs of military personnel.
Military redundancy insurance could help give you peace of mind.
How much does military redundancy insurance cost?
Military unemployment cover can be quite affordable, costing just a few pounds every month for every £100 worth of protection required depending on individual circumstances