6. Key Terms
earner
A person who is employed for financial reward in a permanent position for an average of at least 20 hours per week.
redundant or redundancy
A situation where an employer ends the life assured’ s employment wholly or mainly because the position filled by the life assured has become surplus to the needs of the employer (including where the employer is going into liquidation). Redundancy does not include a situation where the life assured voluntarily elects redundancy or where the employer is owned or controlled by you, the life assured , or a close relative of yours or the life assured .
unemployment
A person who is not engaged in remunerated work or business activities, for 10 hours or more a week.
waiting period
The waiting period will commence on the date the life assured’ s redundancy takes effect.
The waiting period will be the greater of the following:
Four weeks; or
The number of weeks (up to a maximum of 13 weeks) for which any redundancy payment(s) from the life assured’ s employer could reasonably provide income. Such period is calculated as follows: the total after tax amount of any redundancy payment(s) from the life assured’s employer to the life assured in respect of the relevant redundancy ; divided by the life assured’ s average weekly income, net of tax for the six weeks immediately prior to the date that the relevant redundancy took effect.
1113 AL-RED version 1 Effective 5 August 2019
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