Who Needs Retrenchment Insurance?
The short answer to this is; everybody who has a job. On this page we are going to go into a bit more depth than that though. Let me talk you through exactly who needs retrenchment cover. Before that though we will take a peek at what retrenchment insurance actually is.
Retrenchment Insurance is insurance that will help protect you from retrenchment at the company that you work for. Obviously it will not stop you being a victim of retrenchment, but it will provide you with help should the worst happen. The idea of retrenchment cover is that if you lose your job the insurance company will make sure that you have all your expenses covered (i.e. still receive your wages), whilst you try and look for a new position. This will give you peace of mind knowing that you have coverage without the need to find a job straight away. The length of time that the retrenchment cover will pay out depends on the policy you opt for. It is normally a few months at least.
Retrenchment cover should be taken out the second that you get a job that you are happy with and that you will be settling into for a long period of time. This can be either a part time job or a full time job. Most people only opt for retrenchment cover with the latter though unless losing a part time job would have a huge impact on their day-to-day living expenses. You will almost certainly want to take out retrenchment insurance if you are the only person that works in your household. After all; you do not want to lose your job and find that your household is unable to pay bills and the like. Likewise; you should opt for retrenchment cover if you are the main breadwinner in the house.
In short; if you have a job, no matter how secure you think you are in the position, then you should opt for retrenchment cover. There is absolutely no exception to this rule. After all; you are never going to know when you will end up losing your job. We have seen some of the ‘safest’ companies in the world go bankrupt over the past couple of years and you almost certainly do not want to fall into the firing line. Remember; the vast majority of companies out there do not care for your personal life. They do not care that you will be suffering if you lose your position. If they see a way where they do not have to pay wages to a member of staff who is no longer needed then you can bet your bottom dollar that you will be leaving your position pretty sharpish.
Remember; always look around for retrenchment insurance quotes. This is the only way in which you will be able to guarantee that you get the best possible deal on your insurance policy. There are plenty of websites out there that you can utilize for this.