Am I too late to take out payment protection? Is it even worth taking it out?

Whoosher

Hi all

We've recently found out that the company I work for is closing our building (with the loss of 500+ jobs) and we'll all be made redundant some time over the next 12-18 months. With the particular role I have, I should be able to stay near enough to the end.

I've never bothered taking out payment protection insurance on my mortgage, credit cards or loan (loan will be paid off by next Aug anyway), so my question is: am I too late to do that now? Can I ring the lenders and ask them if I can take it out, or is there some kind of magic marker on the system that will flag up the future redundancy? One of the girls I work with has just had a mortgage refused, although the mortgage lender was a subsidiary of our employer so might have had inside information.

dunstonh

Yes, its too late. Once you know of an event like that, you cannot insure yourself against it.

Whoosher

I should clarify - we've been told the proposal to close the building has been agreed by the Exec, but they're still consulting with the union (although there's little doubt that the decision will stick).

However, we haven't been given formal notice of redundancy. Does that make a difference?

herbiesjp

No difference as the possibility is still there

Debt_Free_Chick

If the Company has announced to staff that there might be redundancies then, no, you wouldn't be covered. The simple reason is that there is a very high risk that you would claim on the policy. In order for any insurance to function, there needs to be a balance between high & low risks ... but your situation would be viewed as "close to a certainty".

In addition, there is likely to be a related question on the proposal form. Something like "are you aware of any circumstances which lead you to believe that your job is at risk?" If you answer that dishonestly, then the insurance is void. If you answer it honestly, then you will probably be declined.

Sorry, no positive suggestions for you. But try to batter down your budget; avoid frivolous spending and save as much as you can to tide you over, in case the worst happens.