Redundancy protection if you *think* you may be made redundant.

paul5046

Basically income replacement if you are made redundant.

Obviously if you know you are going to be made redundant, it wont pay out. What about if you think you might. Surely in todays climate that covers everyone, so is it worthless.

-Vita-

Hi Paul

One of the insurance providers who offer Unemployment Cover ask the following questions in order to screen eligibility for the product:

1. Are you aware of any impending redundancies or unemployment?

2. Have you been unemployed or started/ceased trading(if self employed) in the last six months?

3. Are you going to be living and working outside the UK when this plan starts?

"If a life answers yes to any of the following questions, that life will not be eligible for Unemployment Cover."

The first question, in my opinion, is worded in a way which is too vague, as it is open to interpretation -
'are you aware of any' -

In terms of being aware - does this mean officially i.e. notification from the employer, in a letter, verbally, etc.

Any - very vague - there could be an employee in a different department for example which may not have any bearing on you whatsoever.

You should always be honest. Your best bet is to disclose your exact situation, exactly what you know or are aware of before you go through an application. If you speak with an Insurance Adviser first, they can take your 'hypothetical' situation direct to the insurance providers' underwriters and discuss the affects and exactly what would need to be disclosed on the application and exactly how.

If you would like to disclose your situation, etc. I can provide you with further information if you would like?

foggytown

Isn't there also usually a waiting period with these poliies before you can claim?

-Vita-

Correct. Typically there is a 4 week 'waiting period' and then the benefit (typically 50% of your gross monthly income - but paid as net) is paid for up to 12 or 24 months; until you return to employment.