Redundancy Cover
Job loss protection insurance that covers your loan payments, mortgages, and bills if you're made redundant. Get up to 12 months of payment protection.
Redundancy can happen to anyone, even valuable employees. If your position is eliminated, redundancy cover ensures your family's financial obligations continue to be met while you transition to new employment.
Why Choose Redundancy Cover?
- 12 months of payment protection - covers loans, mortgages, and bills while you find new work
- Affordable premiums - from just $8-12 per week for comprehensive job loss coverage
- Real job loss protection - not just redundancy, but accidental unemployment events covered
- Designed for NZ employment - understands Kiwi redundancy practices and Employment Relations Authority
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What Redundancy Cover Protects
Loan Repayments
Personal loans, car finance, hire purchase, and other loan repayments are covered for up to 12 months if made redundant.
Mortgage Payments
Your home mortgage is covered. Keep your house and avoid default notices while you transition to new employment.
Utility Bills
Electricity, water, gas, and internet bills are covered, ensuring your family's day-to-day needs are met.
Insurance Premiums
Home, car, and contents insurance premiums can be included in coverage, protecting your insurance from lapsing.
Coverage is provided as monthly benefit payments up to a maximum amount, ensuring your essential financial obligations are covered during the employment transition period.
Waiting Periods Explained
Why Do Waiting Periods Exist?
Insurance companies build waiting periods (also called excess periods) into redundancy cover to prevent fraudulent claims. They ensure you must be without employment for a period before benefits begin.
Typical Waiting Periods:
Policy Start Date to First Claim: 30 Days
You can't claim within 30 days of the policy starting - this prevents immediate gaming of the system.
Claim Waiting Period: 14 Days
Once redundant, you must typically wait 14 days after job loss before benefits commence.
Maximum Benefit Period: 12 Months
Coverage lasts up to 12 months from the claim start date, after which you need ongoing employment.
What Counts as Job Loss?
✓ COVERED
- • Made redundant by employer
- • Position eliminated in restructuring
- • Unfair dismissal (after legal resolution)
- • Fixed-term contract not renewed
- • Forced early retirement
✗ NOT COVERED
- • Voluntary resignation
- • Dismissal for misconduct
- • Taking early retirement
- • Quitting without cause
Important: Claims must be supported by documentation from employer confirming the redundancy.
Who's Eligible for Redundancy Cover?
Permanent Employees
Full-time and part-time permanent employees are eligible. You must be employed for at least 12 months at application.
Fixed-Term Contract Workers
If on a fixed-term contract with at least 12 months remaining, you're eligible for coverage up to contract end.
Government Employees
Public sector employees can be covered, though some agencies have different eligibility requirements.
Age Requirements
Typically available between ages 18-65. Some products extend to 70, but with different terms.
May NOT Be Eligible If:
- •Self-employed or contractor (varies by product)
- •Employed less than 12 months at application
- •Currently unemployed or seeking redundancy
- •Limited employment prospects (e.g., notice of restructuring)
- •Over age limits for coverage (varies by insurer)
Pro Tip:
Get redundancy cover while employed. Once made redundant, you can't claim benefits under a new policy - you must have been covered at the time of job loss.
Special Considerations for Self-Employed
Can Self-Employed Get Redundancy Cover?
Traditional redundancy cover is designed for employees. However, self-employed individuals can access alternative forms of income protection. Some insurers offer specialised products covering business income loss due to illness or injury.
Self-employed clients: If you're self-employed or a contractor, we recommend discussing your specific situation with our team. We may be able to structure payment protection using income protection insurance or alternative covers that suit self-employment situations.
Sole Traders
May access income protection for illness/injury, but not true redundancy cover. Business interruption insurance might be alternative.
Business Owners
Consider key person insurance and income protection for personal loans while managing business through downturn.
Explore Other Insurance Types
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Mortgage protection for homeowners up to $500,000 coverage.
GAP Insurance
Vehicle shortfall cover if your car is written off.
Protect Yourself Against Job Loss Today
Get comprehensive redundancy cover starting from just $8-12 per week. No broker fees, quick approval, and coverage starts immediately.
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