Unemployment/redundancy cover
Discussion
Few years back I was thretened with redundancy, managed to move internally and avoid it but it got me thinking. Just after that I setup unemployment cover for piece of mind so if I'm made redundant the mortgage is taken care of meaning I don't need to dip into any redundancy money for a while.
I'm sure a lot of you will say this is a waste of money but we seem to go through rounds of redundancy in my company every year. Luckily it's not impacted me since but it's always there.
So to get to the point, recently my provider wrote to me saying my premiums are going up from about £40 a month to £59 a month. Note, I've never made a claim. I'm going to tell them to stick it but wondered if anyone had any recommendations for alternatives, using moneysupermarket I can get similar cover for £33 a month but never heard of the companies so not sure if they are reputable. Any recommendations, anyone actually made a claim on one of these policies?
Cheers
Graham
I'm sure a lot of you will say this is a waste of money but we seem to go through rounds of redundancy in my company every year. Luckily it's not impacted me since but it's always there.
So to get to the point, recently my provider wrote to me saying my premiums are going up from about £40 a month to £59 a month. Note, I've never made a claim. I'm going to tell them to stick it but wondered if anyone had any recommendations for alternatives, using moneysupermarket I can get similar cover for £33 a month but never heard of the companies so not sure if they are reputable. Any recommendations, anyone actually made a claim on one of these policies?
Cheers
Graham
Before you switch cover, double check that the new cover doesn't have a lockout, alot of them do.
Who's the £33 quote from?
Who is your current provider?
Most (if not all) of these policies have shot up over the last 18months or so, mainly becuase they are getting large numbers of claims in.
Your premium is based on the firms claims history, not on your individual circs.
Who's the £33 quote from?
Who is your current provider?
Most (if not all) of these policies have shot up over the last 18months or so, mainly becuase they are getting large numbers of claims in.
Your premium is based on the firms claims history, not on your individual circs.
I have two policies due to the current volatility of the industry I work in - one for my mortgage and one for my salary
I went through two rounds of redundancy 3 years ago and couldn't find any work for over 12 months, they paid out with little hassle and no fuss
the only downside was that I was forced to sign on and go through that arse ache to ensure I had to correct paperwork to send through to the insurance companies
and bear in mind, what I paid for 18 months I recouped within the first month - the policy is worth more than its weight in gold
I went through two rounds of redundancy 3 years ago and couldn't find any work for over 12 months, they paid out with little hassle and no fuss
the only downside was that I was forced to sign on and go through that arse ache to ensure I had to correct paperwork to send through to the insurance companies
and bear in mind, what I paid for 18 months I recouped within the first month - the policy is worth more than its weight in gold
Just noticed the ones coming up on Money Supermarket are critical illness + unemployment. Don't need the critical illnes as I'm covered at moment through work. May be able to get cheaper still with a standalone unemployment cover.
Current policy is with Pinnacle Insurance and is unemployment only.
Cheapest on Money supermarket are, First Assist (£33), Helpucover.co.uk (£35), British Insurance (£38).
this is to cover £1100 monthly mortgage payments.
Cheers
Graham
Current policy is with Pinnacle Insurance and is unemployment only.
Cheapest on Money supermarket are, First Assist (£33), Helpucover.co.uk (£35), British Insurance (£38).
this is to cover £1100 monthly mortgage payments.
Cheers
Graham
ParanoidAndroid said:
Just noticed the ones coming up on Money Supermarket are critical illness + unemployment. Don't need the critical illnes as I'm covered at moment through work. May be able to get cheaper still with a standalone unemployment cover.
they chuck that in for freeI didn't want it but it makes no difference if you do or don't take it
scotal said:
Before you switch cover, double check that the new cover doesn't have a lockout, alot of them do.
I think they all pretty much have a 90 day or 120 day exclusion period to stop people suddenly taking out a policy knowing redundancy is likely. In my company redundancy is usually threatened around Christmas time ba
ds so I am okay with this.ParanoidAndroid said:
Just noticed the ones coming up on Money Supermarket are critical illness + unemployment. Don't need the critical illnes as I'm covered at moment through work. May be able to get cheaper still with a standalone unemployment cover.
Not everyone offer unemployment only. ParanoidAndroid said:
Current policy is with Pinnacle Insurance and is unemployment only.
Cheapest on Money supermarket are, First Assist (£33), Helpucover.co.uk (£35), British Insurance (£38).
Helpucover is a trading name of Pinnacle. Cheapest on Money supermarket are, First Assist (£33), Helpucover.co.uk (£35), British Insurance (£38).
British is a trading name of Towergate
First Assist are part of Cigna.
ParanoidAndroid said:
this is to cover £1100 monthly mortgage payments.
Cheers
Graham
Is it back to day one cover? Is there an excess period?Cheers
Graham
A lot of them have a 60 or even 120 day period after you have taken out the cover before you can make a claim, as has been mentioned, this can be reduced or eliminated if you are taking out a new mortgage or remortgaging.
It can also be reduced or eliminated if you are taking out a policy to replace an existing one, so dont just cancel your current policy then spend a month looking round for another one.
The other way of reducing the premium is to have alonger period before it pays out, consider how long you have worked there and would you get any redundancy pay which would cover the first month or more.
Lastly watch out for this little nasty trick;- you take out cover for £1100 a month mortgage a few years ago, you pay a premium based on this. Your mortgage payment has gone down to £800 because rates have come down. You are still paying original premium (increased by now, of course!)You would like to think that when you make a claim you will get paid £1100, but no, they ask to see your mortgage statement and pay out £800!
It can also be reduced or eliminated if you are taking out a policy to replace an existing one, so dont just cancel your current policy then spend a month looking round for another one.
The other way of reducing the premium is to have alonger period before it pays out, consider how long you have worked there and would you get any redundancy pay which would cover the first month or more.
Lastly watch out for this little nasty trick;- you take out cover for £1100 a month mortgage a few years ago, you pay a premium based on this. Your mortgage payment has gone down to £800 because rates have come down. You are still paying original premium (increased by now, of course!)You would like to think that when you make a claim you will get paid £1100, but no, they ask to see your mortgage statement and pay out £800!
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