Mortgage Protection Insurance Advice

debtfreeian

I work for a bank that has been taken over by another bank. Newspapers such as the Mail have intimated that 25,000 could be made redundant.

I've never had Mortgage Protection, but am considering it now. The policy has the following clause.

"You were aware of impending unemployment at the start date of this Policy."

Would an article in a newspaper fall foul of this clause. I haven't had any direct notification from my employer about redundancies.

Thanks

dunstonh

Rumour is not enough for an insurance company to refuse a claim.

Bank takeovers often take many many months, even years before you see large scale redundancies taking place. They have to do costings and decide which units are going to be closed down and if natural staff turnover will be enough (e.g. no new employment and retirements and leavers not being replaced and movements around with staff). 25,000 wont be covered in natural but I am sure a good number will consider voluntary redundancy as well so that will bring numbers back and of course the Daily Mail dont know the numbers. They are just guessing. They could be right but it doesnt matter as a newspaper article is not enough for you not to take cover out.

Look for how many years Lloyds ran Lloyds and TSB branches that were next door to each other before consolidating. Even the processing units and head office units were kept for a long period (although they are typically the first things looked at). Also, often its not possible to consolidate in many areas due to volume, system differences and different work books and it can take much much longer.

Which bank is it?

debtfreeian

A large mortgage bank. Sorry to be criptic, just a bit worried about snoopers at work.

OshayAway

Many MPPI providers are currently not taking on individuals with certain occupations including banking and finance sector. So you may have to shop around a bit.