Simplifying redundancy with new product
DorchesterLife has released a simple, easy-to-understand redundancy insurance product to help provide a financial ‘stop-gap' for families affected by redundancy.
Friday, October 2nd 2009, 11:17AM
Stop-Gap provides a set monthly benefit, from $500 to $2,000, for up to 120 days for redundancy, and the additional benefit of a lump sum payment for death of $10,000, $30,000 or $50,000.
It also provides a lump sum payment of three times the monthly benefit in the event of bankruptcy. Premiums are defined in age bands, where customers choose their monthly benefit and level of life cover.
"The vast majority of workers in New Zealand no longer have redundancy provisions in their employment contracts, yet most income protection products don't cover redundancy unless you have a mortgage," says Henry Lynch, DorchesterLife's chief executive.
"Many of the products currently on the market are also very complex and too costly for the average New Zealander to afford. Stop-Gap is a realistically priced product that will give customers the added peace of mind in knowing that if they lose their job, it is not going to affect their families too hard until they find employment again."
Although the product is not designed to fully replace customers' incomes, one of its key advantages is that there is only a seven-day stand-down period, compared to most redundancy insurance products that have minimum stand-down periods of between 30 to 90 days.
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