Recommend any providers? Do you think these products worth taking out?
If you don't already have it I can't imagine any of them covering you if you're made redundant in the short term.
Redundancy insurance is a tricky one. Sounds good but there are so many caveats it makes the cover useless in a lot of cases.
You MUST be claiming job seekers allowance (Can take up to 16weeks to arrange)
If in receipt of a severance package, the cover WILL NOT pay out.
Also the questions asked at application for example “are you aware of any reason why your job may be at risk” make new policy applications pointless.
In the current climate this would mean that unless you already have the cover in place already there is little point.
unlike Income Protection Cover (for illness and Injury and being unable to work) which is very straightforward, and even new policies set up now offer cover for CoronaVirus
I think most say 90 day exclusion. No immediate concerns but longer term we are worried about the economy possibly leading to business problems. Isn5 that why most people take it out?
Isn5 that why most people take it out?
Think of it like this.... If there is a particular reason why you want insurance then you'll find that as a reason that insurance companies don't want you.
This was explained to me by an insurance company.
Kinda obvious really
After being made redundant a few times, I took out income protection about 20 years ago as it seemed the better choice (as per the above comments Re Redundancy Insurance).
It still has it's limits (I can claim once in my lifetime and for a maximum of two years and over after my income has taken a substantial hit for a minimum period of three months).
It's fairly expensive (your payment its directly related to the amount of income you want to protect), but every time I think of cancelling it I remember staring over the financial precipice after being made redundant shortly after taking out my first ever mortgage.
Seemed pretty expensive when I looked into it very briefly. I'd rather put that money into savings/investments. If I need it then it is there, if I don't need it now I can sill spend it later. Obviously a terrible plan if you need it in the first year or two but after a while you should have a pot that'll keep the wolf from the door for a while. I suspect some of the things it covers, like mortgage payments, can be deferred if you do have a major upheaval anyway.
I took it out 10 years ago, forgot to update. I now get less than half my salary covered. Bugger! Need to keep updating it and as others have said, 30 days notice to get it started, only lasts 12 months and must be climing universal credit.
