Unemployement Insurance

T4LFR

Back gound, I am married and my mortgage is for example 400/month.

If I take out seperate unemplyement insurance policies for myself and my wife insuring the full 400/month on each policy. Will the insurance pay the full 400 (if either of us is made unemployed) or will it pay what would be my wifes or my contribution (E.g. half of that)???

lisyloo

Depends what you insure for.
You could insure for £200 each which is probably what you want.
I'm not sure if you can go for more, but you can certainly insure for less, so really it's up to you.
Obviously the price will vary depending on the amounts.
If you salaries aren't equal then you might want to vary it
e.g. £150 for you, £250 for her, or you might just want to insure one salary (the least secure job or the one with the worst redundancy package).

Basically, subject to legal and commercial limits, it's up to you.

T4LFR

So if i cant insure the full amount n either of us - does anyone know if thats the case.

I want to insure half each (ish) and then take out payment protection for extra cover????

OshayAway

T4LFR wrote: »

Back gound, I am married and my mortgage is for example 400/month.

If I take out seperate unemplyement insurance policies for myself and my wife insuring the full 400/month on each policy. Will the insurance pay the full 400 (if either of us is made unemployed) or will it pay what would be my wifes or my contribution (E.g. half of that)???

It depends on the provider. Some insurers will allow an individual to insure 100% (and even slightly more) of the entire monthly mortgage repayment even if they are not the main wage earner, others won't.

In the first scenario two joint mortgage holders can each take out cover for the whole amount. In which case, if both are claiming at the same time, double the repayment will be paid. In the second instance, either just the main wage earner can take out a policy for the whole amount or a joint policy with a benefit split proportionate to each earnings ratio.

Make sure you are careful to check this out with the provider you chose, and get them to back it up in writing.

Hope that helps.