Redundancy looming - what's the best insurance cover to put in place?

JoJoB

Hi, wondered if I could get a few pointers here please!

My husband's work may be announcing big redundancies in the summer at only the statutory redundancy package rate. Hubby will get between 2-3K if he is among the unlucky.

I'm not sure if we have mortgage protection, will have to check hubby's bank statements for a likely payment - neither of us can remember if we took it out when we got the mortgage.

So I want to put some sort of MPPI in place - we are paying interest only on £43 mortgage, the rest of the mortgage deal is made up of loans (secured I assume) with Northen Rock. In total our mortgage is £92k on a flat that is probably valued around £110k if we're lucky.

Will MPPI just cover the £43k that is the "traditional" mortgage or the whole lot? I find this all very confusing. And when would it kick in on him being made redundant? Would his small redundancy package affect any payout?

I don't know about benefits/mortgage relief etc either. Didn't Brown announce some sort of mortgage freeze for up to 2 years for those made redundant or has that not happened now?

We have downsized a lot anyway since having a baby and don't have any big expenses like running a car, have also paid off £7k of debt in the last 2 years - have about 4k left. But if he is made redundant it will be difficult to even find a menial job in the particular region we live in at the moment. I can face selling up and renting, just obviously difficult to sell and break even at the moment so some sort of mortgage protection looks like the sensible thing to do.

Any pointers appreciated.

Wutang_2

Firstly take a look at your bank statements - they usually tell you if you have an outgoing that resembles something you think you may have.

And if it is already known that redundancies are on the cards then no one will insure you. Sorry.

I think you have more than £4k in debt....(mortgage + secured loans)

You need to speak to an IFA and also sort out all of your direct debits.

mic200202

If you are only surmising there will be redundancies then he would still be eligible for Unemployment cover for at least the Mortgage amount + extra for Property and life insurance. For the other secured loans, it would be possible to take out separate cover (loan protection). I would first of all check with NRock to get a clear picture of what you have then list everything so you know what is mortgage and what is secured loans.There are many companies who will do this but I would try and do something. ASAP.

lrr_2

Get income protection quick as you need it in place for 6 months (mine was) before the announcement is made. I used ANT INSURANCE. Look at their website. I paid £20 per month for 6 months (like you I had got wind of it!) they then paid me £800 to spend on what I like. They have many types of this insurance and you could get 3,6 and 12 months benefit. You can receive 50% of your wage up to the max of £1000 per month. Really easy to get an online quote. JUST GET IT QUICK!

dunstonh

Ant have a few restrictions not present on others. Its cheap and cheerful cover rather than comprehensive cover.

lrr_2

I was just glad of the return I got on paying them just £120! I imagine they like many others have more restrictions on them now with current economic climate.

JoJoB

Thanks for the replies.

Have now realised though that it is probably a bit late to put this in place - OH's work has been in the national press today about redundancies so I imagine that would affect any payout somewhat!

Thinking cap on again