Redundancy insurance.

[orange n blue]

given the current state of the ecomony and working for an engineering company, a few of us at work were discussing redundancy insurance to cover loss of income should the worst happen.
Anyone out there had any experience. Is it worth it or would I be just as well off with mortgage plus utility cover.

[Puggit]

I had a quick look - by and large you can only protect up to 2000 pound a month and there are lots of stipulations.

I didn't bother...

[scotal]

IS MPPI worth it?

Depends really.
If you are a saver, and have somewhere between 3 & 6 months gross salary in a rainy day account, then its probably not woth it to you.

If you don't or you are the naturally nervous type, then yes it can be worthwhile.

I had it when I was made redundant, and it was a big help to me.

Now, as a vested interest, I can arrange it for you.

As puggit says there are limits on the cover available, and there are conditions, but if you want me to run through things with you, obviously I'd be happy to.


BTW MPPI cover varies wildly from provider to provider. Some have a dreadful record for paying out claims, others have a very good record.
Its allabout buying the right policy.

Edited by scotal on Tuesday 16th December 22:17

[Road Pest]

i have asur through work, i work in mortgages.

[Don]

Puggit said:

I had a quick look - by and large you can only protect up to 2000 pound a month and there are lots of stipulations.

I didn't bother...

A few years back the wife got worried so we took out a policy that covered our mortgage payments. We have nearly cancelled it several times now...but....if we tried to take out a similar policy now it would cost three times as much I reckon.

[scotal]

Don said:

Puggit said:

I had a quick look - by and large you can only protect up to 2000 pound a month and there are lots of stipulations.

I didn't bother...

A few years back the wife got worried so we took out a policy that covered our mortgage payments. We have nearly cancelled it several times now...but....if we tried to take out a similar policy now it would cost three times as much I reckon.

If its MPPI, probably not, if its income protection quite possibly.

[Puggit]

Don said:

Puggit said:

I had a quick look - by and large you can only protect up to 2000 pound a month and there are lots of stipulations.

I didn't bother...

A few years back the wife got worried so we took out a policy that covered our mortgage payments. We have nearly cancelled it several times now...but....if we tried to take out a similar policy now it would cost three times as much I reckon.

That we do have, on both our mortgages (UK and France) as part of life insurance I believe - however it was actual redundancy insurance I was referring to.

[orange n blue]

I have done some on line quotes for income protection and to cover £2000 would cost about £60 per month. If the worst happens, I should get approx 3 months salary as compulsory redundancy pay out.

[scotal]

Puggit said:

Don said:

Puggit said:

I had a quick look - by and large you can only protect up to 2000 pound a month and there are lots of stipulations.

I didn't bother...

A few years back the wife got worried so we took out a policy that covered our mortgage payments. We have nearly cancelled it several times now...but....if we tried to take out a similar policy now it would cost three times as much I reckon.

That we do have, on both our mortgages (UK and France) as part of life insurance I believe - however it was actual redundancy insurance I was referring to.

Are you saying you have life assurance that covers your mortgage? Decreasing cover? Thats not the same as income protection of MPPI (used to be called ASU)

[scotal]

orange n blue said:

I have done some on line quotes for income protection and to cover £2000 would cost about £60 per month. If the worst happens, I should get approx 3 months salary as compulsory redundancy pay out.

Is that for full ASU or unemployment only?
Is it back to day one cover, or is there a 30 or 60day excess period?

[orange n blue]

its unemployment only and 30 days excess

[scotal]

orange n blue said:

its unemployment only and 30 days excess

I can get you back to day one cover for less than that, not much less admittedly.

[orange n blue]

would I still be able to use it if I had savings. Some policies I have heard will not pay out if you have savings.

[scotal]

orange n blue said:

would I still be able to use it if I had savings. Some policies I have heard will not pay out if you have savings.

Yes, you will. The bit you have to be careful of with all of these policies is Payment in lieu of notice.
Drop me a pm if you want more details.

[sleep envy]

for £30/mth I though it was worth it seeing as my redundancy payment would be all of £330

[bompey]

try churchill or the postoffice. they're the cheap ones on moneysupermarket.com and i suspect getting a lot of business at the moment.

[scotal]

bompey said:

try churchill or the postoffice. they're the cheap ones on moneysupermarket.com and i suspect getting a lot of business at the moment.

The post office one is Full asu only, and is expensive at 4.5%