Website warns about redundancy insurance .
The finance website Fool.co.uk is warning workers about redundancy insurance .
With more workers facing unemployment as a result of the recession, people believe they need to take out such cover, which is also known as unemployment insurance . However, Fool.co.uk says that redundancy insurance policies can be expensive and misleading and may not pay out when they are required.
Such policies generally cover only job loss through compulsory, not voluntary, redundancy and work must be actively sought as claims are made. In addition, claimants might have to wait for 30 to 60 days before they receive any money and may also have had to have been in six months continuous employment beforehand.
David Kuo, head of personal finance at Fool.co.uk, said: "Redundancy insurance is expensive when compared to Income Protection insurance, which protects against loss of income if you can't work. Another option is to self-insure by putting aside at least three months worth of expenses."




