What is Payroll Insurance
Payroll insurance is a bright new product from in the financial industry, it is made by the people who understand and operate payroll services like accountancy and ledgering.
Payroll insurance is a product of the future but available today, basically what it does is cover your staff or you own salaries with an insurance policy in case you ever need to supplement your salary because of needing to take a pay cut.
How does it work?
So for example if you were earning £30,000 per year but you were made redundant or needed to relocate, if your next salary was less than your previous the policy would pay you the difference for 12 months, asif it was another income. Policies are relativley cheap and usually cost around £20 per month, but can cover you for up to £10,000 per year in the event of needing to take a pay cut, demotion or other circumstance that may require you to earn less for a period of time.
It is just like PPI
The policy is designed to help people adapt to a different way of living if their circumstances change due to reasons outside their control. The insurance is much like payment protection insurance (PPI), PPI covers you in case of a change in circumstance that mean you are unable to earn because of accident, sickness or illness. A PPI policy is usually taken out at the point of purchasing a credit card, loan, mortgage and many other forms of finance, but in more recent times PPI claims are rife, banks have been judged to have missold PPI and so have been fined several million pounds in the process by the financial governing bodies.
Making PPI Claims
As mentioned PPI claims are becomming very common, with the OFT estimating that there are over 30 million policies in the UK the chances are that you may have one, check your credit card and loan policy statements for added insurance, this may not be called PPI but will be added to your bill each month or a lump sum of PPI added to your total loan amount.
