With all this talk of Redundancy
Discussion
Tony*T3 said:
Income protection is probably more efficient. Rather than protect your mortgage payments (which will only be the interest payments I suspect, not capital) my income is protected to 75% of salary.
Have you got any more info on this Tony? I have a policy but it is capped at about 35% of my salary, I'd like to increase that really.Tony*T3 said:
Income protection is probably more efficient. Rather than protect your mortgage payments (which will only be the interest payments I suspect, not capital) my income is protected to 75% of salary.
But what are the terms of it? How soon does it kick in? Every policy I've ever seen doesn't kick in until long after you are laid off and won't pay out if you are working at all. I have 2/3rd's of mine covered an have previously had to use it. The reason only 2/3rd's is covered is that was the value of my mortgage before I moved.
Having to make a claim was awful as I had to 'sign on' in order to prove I was out of work. Has to count as one of the worst things I have ever had to do. Second time I was out of work I made sure I got another job before it became an issue.
Having to make a claim was awful as I had to 'sign on' in order to prove I was out of work. Has to count as one of the worst things I have ever had to do. Second time I was out of work I made sure I got another job before it became an issue.
I looked into this a while ago. A lot of policies only cover from something like the 60th day of not working thats 2 months of no income.
Also I'm sure that there will be get out clauses such as
"if you knew or had reason to believe you might become unemployed"
This is so open ended and could be interpreted as there is a rescission occurring of course there is going to be job cuts. Therefore you are not paying out.
Also I'm sure that there will be get out clauses such as
"if you knew or had reason to believe you might become unemployed"
This is so open ended and could be interpreted as there is a rescission occurring of course there is going to be job cuts. Therefore you are not paying out.
It saved my a55 when I bought my first place.
Back then I really didnt understand the importance of it - until about 6 months into my mortgage the company I worked for went bump!
Thankfully the mortgage protection kicked in and gave me the time I needed to set up my own business.
One of my smarter moves, especially when you find out what job seekers allowance actually offers you
Back then I really didnt understand the importance of it - until about 6 months into my mortgage the company I worked for went bump!
Thankfully the mortgage protection kicked in and gave me the time I needed to set up my own business.
One of my smarter moves, especially when you find out what job seekers allowance actually offers you
NikB said:
Tony*T3 said:
Income protection is probably more efficient. Rather than protect your mortgage payments (which will only be the interest payments I suspect, not capital) my income is protected to 75% of salary.
Have you got any more info on this Tony? I have a policy but it is capped at about 35% of my salary, I'd like to increase that really.Only have sickness cover.
Looked into Income protection but it was damn expensive, I think it worked out at 20% of my net pay, and even then it didn't pay out until after 6 months of being off work, AND only paid out for a further 6 months or so IIRC, so I didn't bother. IF I was still off work after 6 months I'd lose my house anyways.
Looked into Income protection but it was damn expensive, I think it worked out at 20% of my net pay, and even then it didn't pay out until after 6 months of being off work, AND only paid out for a further 6 months or so IIRC, so I didn't bother. IF I was still off work after 6 months I'd lose my house anyways.
eightseventhree said:
I looked into this a while ago. A lot of policies only cover from something like the 60th day of not working thats 2 months of no income.
There are ploicies that offer back to day 1 cover. So it pays from the date you are made redundant, but it does pay in arrears. The one I tend to recommend does this. I have personal experience of it paying out too.eightseventhree said:
Also I'm sure that there will be get out clauses such as
"if you knew or had reason to believe you might become unemployed"
This is so open ended and could be interpreted as there is a rescission occurring of course there is going to be job cuts. Therefore you are not paying out.
If you are under notice of possible redundancy then the policy would be null and void. However if you are not under a specified threat of redundancy then the insurer wouldn't be able to wriggle out of the claim that way."if you knew or had reason to believe you might become unemployed"
This is so open ended and could be interpreted as there is a rescission occurring of course there is going to be job cuts. Therefore you are not paying out.
There are some insurers who are awful (one of the big players in MPPI will do everything possible to avoid payment) but equally the decent firms are fine.
The t&c's are not unduly onerous.
Cheers Scotal,
The cover would mainly be for my wife as she works in the aviation industry no notice of redundancy just hearsay and rumor mainly due to the cost of Jet Fuel and less people flying for business uses which most likely will turn into nothing.
Will have a look into this, any recommendation of company's etc
The cover would mainly be for my wife as she works in the aviation industry no notice of redundancy just hearsay and rumor mainly due to the cost of Jet Fuel and less people flying for business uses which most likely will turn into nothing.
Will have a look into this, any recommendation of company's etc
I had to use my policy last year after redundancy. it covered from day 1, albeit in arrears, for 125% of the total payment (including capital) so it also covered the cost of ongoing protection payments.
I had to send a copy of the redundancy letter and lists of the jobs i had applied for every month, in addition to the evidence of signing on.
I had to send a copy of the redundancy letter and lists of the jobs i had applied for every month, in addition to the evidence of signing on.
stackmonkey said:
I had to use my policy last year after redundancy. it covered from day 1, albeit in arrears, for 125% of the total payment (including capital) so it also covered the cost of ongoing protection payments.
I had to send a copy of the redundancy letter and lists of the jobs i had applied for every month, in addition to the evidence of signing on.
Who was your cover with?I had to send a copy of the redundancy letter and lists of the jobs i had applied for every month, in addition to the evidence of signing on.
I have protected my mortgage payments against redundancy. If you go for redundancy protection, its loads cheaper than an ASU plan. Some policies also let you add home related costs (council tax, building insurance premium).
Mine pays out straight away if I'm made redundant but only for one year. I also had a period of time (i think either 60 or 90 days) when I wasn't covered when I first took out the plan. This is obviously to try and stop people taking out a policy when they have good reason to believe that they'll claim.
Word of warning though. My insurers have just doubled my premium, assumedly just due to the general increase in unemployment. They also reserve the right to withdraw cover at any time.
Mine pays out straight away if I'm made redundant but only for one year. I also had a period of time (i think either 60 or 90 days) when I wasn't covered when I first took out the plan. This is obviously to try and stop people taking out a policy when they have good reason to believe that they'll claim.
Word of warning though. My insurers have just doubled my premium, assumedly just due to the general increase in unemployment. They also reserve the right to withdraw cover at any time.
Tony427 said:
I'd recommend paymentshield £37 per month for £1500 per month payment cover. One month waiting period for it to kick in and then 12 months cover.
It would be stupid in this day and age to take out a mortgage and not take out payment cover if it costs so little.
Cheers,
Tony
I would be very wary of recommending the company you mentioned.It would be stupid in this day and age to take out a mortgage and not take out payment cover if it costs so little.
Cheers,
Tony
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