Income/Redundancy Insurance Providers

village_life

Hi

I am trying to find a company who will provide Income Protection insurance in the case of Redundancy only (not sickness etc) - to a level of around £1,500. THis is to cover Mortgage and Utility payments.

I've tried some of the usual suspects - but does anyone have any suggestions of companies, or specific experiences to share?

Thanks
Paul

sinking_fast_3

Hi Paul

I'm looking for exactly the same, even down to the same amount of cover. If I find anything I'll let you know. Sorry I cant be more helpful

Jac

village_life

Hi Jac

I think the key thing Ive found since looking at this again is that of all the insurances, this seems to be the least common -perhaps the underwriters dont like guesstimating about the future employment prospects of people - nor is it something that we want to gamble with ourselves - so causes a bit of a problem

Following some chats with brokers recently, there are 2 main types of this insurance (probably teaching you to suck eggs) that its worth clarifying

- Mortgage Payment Protection Insurance(MPPI)
- Income Protection

The first one is geared only to paying off mortgage payments if you lose your job, but will typically give an extra 25% of your mortgage payment to cover utility bills and the like - so for my mortgage of £1000pm, I can receive a maximum cover of £1250

Quotes for this one havent been too bad - around the £25-30pm mark

On Income Protection, this provided a tax free sum for the period covered (usually 12 months) which gives you discretion as to what to spend the money on - again this is usually limited, to around 50-65% of GROSS SALARY.

On my salary, I've had quotes ranging from £35-£55, from companies such as Pinnacle.

However, it transpires that my original deal is probably the best ... when I signed for my mortgage, my advisor introduced me to PaymentShield... they have offered me cover for £1250 @ £35 per month - with the first 6 months free cover to start with.... At first I Was wary of accepting this deal just because of the free months benefit, but it turns out its probably the best deal around....

As ever its a game of playing the risks- with what I've got i can cover the mortgage and make a stab at the utility bills, and i can depend on the missus to supplement with her salary - things might be tighter than usual, but
a) hopefully not for too long before i get a new job and
b) MORE IMPORTANTLY - Hopefully I wont get made redundant and I can call the insurance premiums 'wasted' in another 15-20 years when the bulk of the capital on the house is starting to be eaten away at :-)

AndrewSmith

Hi VillageLife

I have the ability to offer Paymentshield protection products also, and I have found that they have been very competitive with others on the market, and there are no catches for the free initial cover.

(Note to site regulators. Poster has already arranged his cover therefore this is not a post directed at touting for business, merely confirming that the poster has a good product)

Andy

sinking_fast_3

Hi Paul

Thanks for all the info. I didnt appreciate the difference between MPPI and Income Protection.

About 10 years ago I had cover against redundancy which was arranged through a broker. (Ididnt want to go through a broker again which was why I was trying to find out about this myself)

When I was made redundant (10 yrs ago) the insurance company paid out the full 12 months, they were great. I couldnt remember the name of the company and didnt know whether they were still around, but now that you mention Paymentshield I am sure that was the company that paid out on my claim. They were really good, no complaints although after 6 months they did do a home visit to check on me. I was signing on as unemployed but when they rang me at home I was answering the phone as if it was a business. This is because my husband was self-employed and ran his business from home. They thought I was working and claiming JSA and insurance. Cant blame them for checking, and the guy that visited was fine about everything. I then went on to claim for the full 12 months with no further problems.


Thanks for jogging my memory

Jac

salesguy

Just remember to look at the small print - I have just been made redundant, and cannot claim on the insurance until the end of my notice period - at which point I will be in a new insurance year. I am waiting to see if the company will offer me cover into for the next period, as (potentially) I could be unemployed when the new cover year starts - so will they cover me??!?!?

Will let you know.

SalesGuy

payless

Paymentshield have gone back to saying they only deal via "advisers"

I've not had any really bad feedback from clients in the 8 years that I have used them.

Free period usually helps offset the fact that sometimes others are cheaper ( although not always)

That said with other policies now coming out with age related premiums , extended claim periods and larger limits ( ie no % of income rule % greater cover on top of mortgage for other bills) , so advice is recommended from someone willing to consider a wider range of providers.

These tyepes of policies come with various "exclusions" and conditions , so make sure you understand what you have got!