Things to remember if you suddenly become retrenched

woman-sitting-on-couchHaving had worked her whole life, Denise was excited about finally closing a big chapter of her life, and looked forward to her retirement in five years’ time. She looked forward to sleeping late and having more time to visit her friends.

To her horror, her employers suddenly announced that they were closing down the business and that each and every one of the employees would lose their jobs. In 3 short months, Denise joined the ranks of unemployed. While dealing with the drastic changes in her life, Denise had forgotten to inform important service providers of her retrenchment, including her Credit Card company, motor vehicle finance house, Legal Protection Insurers, as well as three clothing stores and a hardware store, all of which she owed money to.

Had Denise informed these service providers, they would have told her that Retrenchment Cover was automatically included on each of the contractual accounts and that for six months, her monthly repayments would be paid from the Insurance Company.

How does Retrenchment Cover work?

To claim Retrenchment Cover you have to apply to the store within 60 days of losing your job. Furthermore, you have to prove that the termination of employment was a Retrenchment, and not a dismissal or resignation. The cover attached to your accounts will pay the premium on that account for a time period of six months. Alternately, you can take out a separate plan to protect your entire salary from R3 000 to R30 000, and you can protect yourself until 65 years of age.

Northwood Financial Services cc addresses the issue of Retrenchment Cover with our clients. Contact us today for assistance.

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