Retrenchment, or losing your job and your income, is one of the most stressful events that can happen in your life. It’s right up there with losing a loved one, moving home or getting divorced.

In today’s tough times, more and more people are facing the reality of retrenchment. Protecting our income should be one of our main concerns when building a robust financial portfolio.

The problem of losing our income is compounded when the economic climate is struggling to make provision for more jobs. Often without more than a day’s notice, we can find ourselves without a job, and without an income. If we could just start a new job the next day, that would be great, but if there aren’t jobs available… it’s a considerable problem.

Well, what if that weren’t a problem? What if we can protect our income for a few months whilst we secure a new plan to generate the income that we need?

This is why we build income protection policies into our financial plans.

What are the benefits of retrenchment cover?

1. Get the right job at the right salary, not just the first one available
Few things inspire panic like knowing that there will be no money coming in at the end of the month. So, a lot of retrenched people rush out into the job market in desperation and take the first thing that’s offered to them – often at a lower salary than they are worth. But what if you could wait for a job that made you happy, you are passionate about, and paid decent money? Insurance means you can have that chance.

2. Eliminate the stress and improve the performance
Research has proven that stress makes you perform worse at work, and that someone who fears they will get fired will, ironically, be more prone to making errors that might put their job at risk. But the law protects people against unfair dismissal and, with retrenchment cover, you don’t have to worry about those ‘cutting staff’ rumours.

Important note: retrenchment cover does not help you if you are fired, only retrenched as a full-time employee.

3. Save your savings
If you are saving for a home, a holiday or retirement… guess what is at risk if you are retrenched? Protect the savings you have with cover so that, if you lose your job, you can still go to Paris or buy that home.

4. Save your quality of life
There are a lot of things that can be put in serious jeopardy by three months in between jobs; your ability to pay rent in a place or area you love, your gym membership which keeps your stress manageable, and the ability to keep up with your utility and services bills.

So, do you really need Income Protection? Well… if you want the security to thrive, then we believe you do.