Redundancy insurance - Is it really worth it?
Discussion
Having recently moved house and taking on what i deem to be a sizable mortgage, I've been considering if i should take out a redundancy insurance policy.
I'm fairly well skilled with relevant qualifications, and I've never been out of work before however with Brexit looming and being a bit of a worrier I've been getting some quotes.
Seems to be many terms and conditions for actually qualifying for claiming so looking for anyone's advice/experiences of claiming if possible please.
TIA.
I'm fairly well skilled with relevant qualifications, and I've never been out of work before however with Brexit looming and being a bit of a worrier I've been getting some quotes.
Seems to be many terms and conditions for actually qualifying for claiming so looking for anyone's advice/experiences of claiming if possible please.
TIA.
I had it mainly because I was previously made redundant and with a family and mortgage it was fairly stressful.
I found employment 3 weeks later. In a better role with slightly more money.
After a few years I had worked my way into middle senior management and upon hearing rumours took out such insurance. Transpired I was safe but I left the insurance going.
A few years down the road it was a different ballgame and a lunch with my boss was ended by the news that my role was going to be redundant within 6 weeks. It helped I had the redundancy insurance in place. If I'm honest I had worked for a number of years and honestly fancied a break. My policy was 12 months payout with a 30 day excess. So in the claim went.
The insurer was a pain. Initially they rejected my claim saying it wasn't redundancy. I had to ask them to re-read my compromise agreement and highlighted one page to them asking them that if that wasn't redundancy then perhaps they'd like to speak to my solicitor about it.
Basically they wanted my left testicle but after a bit they relented and paid out. I then sat back and enjoyed the monthly payouts for 6 months before looking for a job.
When I was back in employment did I start the insurance up again? No. This is more down to the fact I was in a position where I would get rumours of impending redundancies rather than expense.
I found employment 3 weeks later. In a better role with slightly more money.
After a few years I had worked my way into middle senior management and upon hearing rumours took out such insurance. Transpired I was safe but I left the insurance going.
A few years down the road it was a different ballgame and a lunch with my boss was ended by the news that my role was going to be redundant within 6 weeks. It helped I had the redundancy insurance in place. If I'm honest I had worked for a number of years and honestly fancied a break. My policy was 12 months payout with a 30 day excess. So in the claim went.
The insurer was a pain. Initially they rejected my claim saying it wasn't redundancy. I had to ask them to re-read my compromise agreement and highlighted one page to them asking them that if that wasn't redundancy then perhaps they'd like to speak to my solicitor about it.
Basically they wanted my left testicle but after a bit they relented and paid out. I then sat back and enjoyed the monthly payouts for 6 months before looking for a job.
When I was back in employment did I start the insurance up again? No. This is more down to the fact I was in a position where I would get rumours of impending redundancies rather than expense.
I've had a policy and made a claim. My policy paid me a certain sum each month for the mortgage and bills.
There were some hoops to jump through and certain requirements but nothing too onerous.
For my particular policy I notified them the first day after I finished work. They asked some questions but the sooner you tell them the sooner you can claim. They won't start a claim for the first two weeks. But because I was paid 3 months in lieu of notice the claim wouldn't start until the end of that.
In the meantime they sent me some paperwork to complete and return. Most of it was straighforward although they did want a form completed and signed by my previous employer, including it stamped by them or with a letter on headed paper.
They also required I registered for JSA. I did that anyway (entitled to 6 months due to contributions). I believe I had to include a copy of the initial JSA letter with their paperwork.
Once the claim started at the end of each month I had to:
1: Sign a form confirming I was still looking for work.
2: Complete a form listing at least 3 roles I had applied for during that month. Listing the company, role and application date plus if known their contact details and any update.
3: A copy of my bank statement showing the JSA payments (blanking out everything else). Once the JSA payments stop they didn't require the bank statement.
Regarding the roles applied for, their policy stated they could ask for proof. So I would just print a copy of each job advert and a copy of the application confirmation and send that to them each month with everything else. Sounds like a bit of faff but probably took me less than 30 minutes a month and made sure they had everything to enable my claimed to processed without delay.
They would pay me within a few days of receiving my paperwork and then write to me confirming it and the paperwork etc. for next month.
They did ring me about 3 times during the claim, normally the same person. Yes they were checking what I was doing but I was honest and upfront about what was or wasn't happening and they were fine.
So overall a positive experience for me. Yes, they had expectations and I had to do things but thats insurance.
Hope this is some help to the OP but that you never need it!
There were some hoops to jump through and certain requirements but nothing too onerous.
For my particular policy I notified them the first day after I finished work. They asked some questions but the sooner you tell them the sooner you can claim. They won't start a claim for the first two weeks. But because I was paid 3 months in lieu of notice the claim wouldn't start until the end of that.
In the meantime they sent me some paperwork to complete and return. Most of it was straighforward although they did want a form completed and signed by my previous employer, including it stamped by them or with a letter on headed paper.
They also required I registered for JSA. I did that anyway (entitled to 6 months due to contributions). I believe I had to include a copy of the initial JSA letter with their paperwork.
Once the claim started at the end of each month I had to:
1: Sign a form confirming I was still looking for work.
2: Complete a form listing at least 3 roles I had applied for during that month. Listing the company, role and application date plus if known their contact details and any update.
3: A copy of my bank statement showing the JSA payments (blanking out everything else). Once the JSA payments stop they didn't require the bank statement.
Regarding the roles applied for, their policy stated they could ask for proof. So I would just print a copy of each job advert and a copy of the application confirmation and send that to them each month with everything else. Sounds like a bit of faff but probably took me less than 30 minutes a month and made sure they had everything to enable my claimed to processed without delay.
They would pay me within a few days of receiving my paperwork and then write to me confirming it and the paperwork etc. for next month.
They did ring me about 3 times during the claim, normally the same person. Yes they were checking what I was doing but I was honest and upfront about what was or wasn't happening and they were fine.
So overall a positive experience for me. Yes, they had expectations and I had to do things but thats insurance.
Hope this is some help to the OP but that you never need it!
sparky1pq said:
Once the claim started at the end of each month I had to:
1: Sign a form confirming I was still looking for work.
2: Complete a form listing at least 3 roles I had applied for during that month. Listing the company, role and application date plus if known their contact details and any update.
3: A copy of my bank statement showing the JSA payments (blanking out everything else). Once the JSA payments stop they didn't require the bank statement.
Regarding the roles applied for, their policy stated they could ask for proof. So I would just print a copy of each job advert and a copy of the application confirmation and send that to them each month with everything else. Sounds like a bit of faff but probably took me less than 30 minutes a month and made sure they had everything to enable my claimed to processed without delay.
I forgot about doing this also.1: Sign a form confirming I was still looking for work.
2: Complete a form listing at least 3 roles I had applied for during that month. Listing the company, role and application date plus if known their contact details and any update.
3: A copy of my bank statement showing the JSA payments (blanking out everything else). Once the JSA payments stop they didn't require the bank statement.
Regarding the roles applied for, their policy stated they could ask for proof. So I would just print a copy of each job advert and a copy of the application confirmation and send that to them each month with everything else. Sounds like a bit of faff but probably took me less than 30 minutes a month and made sure they had everything to enable my claimed to processed without delay.
They also had a habit of calling me on my landline despite requests to call my mobile. One of those calls was 3 hours after I left for a fortnights holiday. By the time I got back and called them they had escalated to their parent company as I hadn't returned the call. An honest and frank phone call followed and I suggested the fact they always called my landline could be seen as trying to catch people out. We even discussed the fact that it might be an idea if they had a sister agency to find people jobs and I was told that was already in advanced discussions.
They never called me again after that without emailing me asking to call in.
i was offered it and after seeing the cost politely declined.
i wish I had it now of course with hindsight but I do wonder if they only start the clock for payment once all of any redundancy money has been used up.
hey ho you live and learn. think for me bearing in mind youre only ever going to get 12 months pay out it was about £130 a month premiums.
i wish I had it now of course with hindsight but I do wonder if they only start the clock for payment once all of any redundancy money has been used up.
hey ho you live and learn. think for me bearing in mind youre only ever going to get 12 months pay out it was about £130 a month premiums.
I've had it, and successfully claimed despite only having had the policy for 3 months before making the claim.
They lean heavily on the job centre, and you have to be "in the system" - keeping your appointment at the job centre every 2 weeks, and getting a form to submit to the insurer every 2nd visit. Going on holiday is challenging - more from the job centre perspective than the insurer. I went away for 3 weeks at the beginning of the process, whilst I was still receiving "pilon".
The best bit is that your employer is highly unlikely to share that many details with the insurer about any redundancy process. Mine told the insurer the date that I was officially made redundant - that was it. No more details were forthcoming.
They lean heavily on the job centre, and you have to be "in the system" - keeping your appointment at the job centre every 2 weeks, and getting a form to submit to the insurer every 2nd visit. Going on holiday is challenging - more from the job centre perspective than the insurer. I went away for 3 weeks at the beginning of the process, whilst I was still receiving "pilon".
The best bit is that your employer is highly unlikely to share that many details with the insurer about any redundancy process. Mine told the insurer the date that I was officially made redundant - that was it. No more details were forthcoming.
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