Specialist online insurance company Insfin Solutions will use brokers in its distribution strategy for a new product covering redundancy.

MD Wally Ripper says the standalone offering will be marketed as income security insurance and underwritten by general insurer Avea.

He says in developing the product with Avea the aim was to ensure it is sustainable over the long term.

Monthly benefits are up to 85% of income, paid direct to the insured, with a maximum benefit of $7000.

Cover periods are up to three, six and nine months, and there is a choice of 30, 60 or 90-day waiting periods.

The policy includes an optional retraining benefit of up to $2500.

Not all occupations or industries and employers are eligible.

Mr Ripper expects the current economic environment will lead to professional services providers such as insurance brokers, advisers, mortgage brokers and accountants receiving enquiries about redundancy protection.

“Job insecurity will continue to grow as more and more workers in vulnerable industries find themselves unemployed as the Australian economy adjusts,” he said.

“Brokers and advisers can add this cover to existing income protection policies, so it is a client retention strategy.”

Mr Ripper says some loan insurance products cover loan repayments in the event of redundancy – but the payments are made direct to the lender, not the client.