Should I bother with Income protection?

wannabelucky

I'm looking at covering myself for Sickness etc, but there was rumours about 5/6 months ago that some jobs may go (education) and nothing has been mentioned to staff at this stage. I don't know if this will affect me, and if there are any redunancies to be made they won't happen until the end of 2010. Is there any point covering myself for redundancy or would this be classed as 'foreseeable'?

Cheers

Stubbarama

Speculation and rumour do not count as forseeable, if you have been told by your employer that in the future jobs may go, than that is forseeable.

wannabelucky

I was told by a third party who go it from the boss that this may well happen. The staff haven't been informed yet. Is this then foreseeable?

jazzyman01

The insurance companies are not daft. They will try their absolute best not to pay out any monies at all, you only have to read the posts on this site to see what lengths they will go to. You may also have to do a period of payment without any claim being entertained by them and, in the current market, they will be more vigilant in contacting your employer about current working situations. Premiums might also be very high.

It would be interesting to see exactly what percentage of claims are actually paid - I bet it is very, very low.

motorguy

i have this insurance through abbey and i had no problems with them paying out when i was made redundant a couple of years ago.

I would say if someone took out the payment and then was made redundant two or three months later then alarms would ring, but if someone takes out the insurance (which is not an unreasonable thing to do) and gets made redundant maybe a year later, then i dont see how they can object?

My wife took out £1500 a month cover for less than £50 a month premium - doesnt seem expensive to me?