Being retrenched can happen to anyone at anytime. How prepared are you? In most cases, many people go on without a clue that they will be laid off until it happens. It is always good to be prepared. If you are working, you need to consider taking up retrenchment insurance. This ensures that your life is not adversely affected in case the worst happens. Here are some things you should know about retrenchment protection insurance.
Retrenchment Insurance Helps you Stay Afloat
When you lose your job, you do not have to lose other things in your life such as your house, car or go without the basic needs. Although this policy does not guarantee you the kind of lifestyle you were used to before you lost your job, it makes sure that you have a comfortable life. You will have peace of mind for the period it will take before you get another job. Some insurance companies’ retrenchment policies cover you for 6 months, others for more.
You are Guaranteed a Portion of Your Salary on a Regular Basis
The amount varies depending on the insurance company you choose and the amount covered. The most important thing is that you will get a portion of your salary on a regular basis for the agreed upon period.
You Get Time to Think and Refocus
Losing your job can be sad and sometimes devastating. It can even be harder when you have to deal with the shock of losing your job and do not have money to pay the bills. When you have retrenchment insurance, you can take time off, get over the loss and start allover again at your own pace. You should however note that the policy does not cover you in case you quit your job, become sick or disabled – although their are options to cover you against this.
In South Africa’s current economic climate of unpredictability, having retrenchment cover has become more of a necessity than an option. You can speak to one of our accredited financial advisors about adding it to your financial portfolio.