DorchesterLife ‘Stop-Gap’ Simplifies Redundancy Insurance
29 September 2009
Financial services company, DorchesterLife, has released a unique, easy to understand Redundancy Insurance product to help provide a financial ‘stop-gap’ for families when they are hit by redundancy.
‘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,’ said DorchesterLife Chief Executive, Henry Lynch. ‘Many of the products currently on the market are also very complex and too costly for the average New Zealander to afford. With Stop-Gap, we have simplified the benefits, criteria and premiums so you know exactly what you are covered for and what you would receive should you lose your job.’
Stop-Gap provides a set monthly benefit (from $500 to $2000) 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 have clearly defined age-bands and the easy-to-read table lets the customer choose their monthly benefit and level of life cover. For example, a 44 year-old wanting a monthly benefit of $2,000 and $10,000 life cover would pay just $1.29 per day. There are no health questions and acceptance is guaranteed.
‘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 family too hard until they find employment again. It is not designed to fully replace their income, but as a financial ‘stop-gap’ to help pay the rent or mortgage if they are out of work.’ said Mr Lynch.
‘Most of the redundancy insurance products currently available have minimum stand-down periods of between 30 – 90 days, which could put many people in serious financial difficulty. One of Stop-Gap’s key advantages is that there is only a 7-day stand-down period and the agreed monthly benefit is not affected by any other payments they may also receive.’
DorchesterLife has been an established player in the insurance and savings market for over 30 years, and believe this new, innovative product will be widely accepted with a broad range of customers.
Mr Lynch said ‘The latest Consumer Credit Expectations Survey from Dun and Bradstreet shows that almost half of working New Zealanders could only survive for a month without their income before they would be in deep trouble. Stop-Gap is an affordable option for anyone to ensure that their family have some financial support to help keep them afloat until they are back on their feet again. ‘
ENDS