Insurance against redundancy/company going bust?

Brand0

My employers are in bad shape, but I don't know where to begin with insurance as I don't want to get the wrong type, or indeed if there's a difference in terms of insuring against either eventuality.

It's unlikey that I'd be made redundant due to my role (rather than my ability...) but I can't rule it out. The threat of going bust is the big one so I want a contingency against that primarily, though I'd welcome advise on either - as well as my approach.

I've been there 7 years and am not a top rate taxpayer by any means.

Thanks in advance.

jonesMUFCforever

As you are already aware of the possibility of a problem down the line - you cannot truthfully fill in an application stating that you are unaware of a problem can you?
Maybe looking for a new job is the next option.

McKneff

You are aware of the situation, unfortunately it is too late to take out insurance cover.

Never, ever lie to an insurance company. It has far reaching effects if you are found out.
You wont ever in future be able to get any insurance for anything other than paying premium prices (if at all)

Good luck in your job hunting.

Why is it that you say its unlikely that you will be made redundant, if you have been an employee for 7 years and the company closes or goes belly up then you are redundant.If they cant pay you, you claim it from the state.

Brand0

McKneff - I meant that if, for example, they take the route of making staff redundant, I would likely keep my job (due to the role, rather than my brilliance).

This is all based on my personal interpretation rather than information (informal, or otherwise apart from hints such as 'we are in tough times in this recession') forthcoming to staff, so I'm looking to cover myself before bad news - which may, or may not - cometh. For anyone.

I didn't really plan to go into all that, but if it means I'll actually get an answer, I might be able to get away with it, as long as I'm not subjected to torture.... in which case I'd admit to having a sneeky suspicion that the company could have gone down, at some point in the future.

Brand0

Anyone? Please?

opinions4u

The best form of insurance I can see for this situation is called a savings account.

Start making economies at home, just in case, and build up a contingency fund for the worst possible outcome.

lisyloo

I don't want to get the wrong type, or indeed if there's a difference in terms of insuring against either eventuality.

Have you thought of using an indepedent advisor.
They should be professionally qualifed to answer your questions.
They can work on a commission basis where they get paid by the provider and not you so it doesn't cost you anything (some have clawback clauses if you cancel early as then they don't get paid).

gazza333

I had insurance by iprotect. I think it was lifestyle insurance wherebye you could insure for a certain percentage of your salary to be paid in event of redundancy sickness etc.
As long as the company has not made any statements that they are in dificulties and may make redundancies then you will be ok. You have to have it running for 3 months i think it was before they will pay you out.

I suspected my company was going down this line so took out insurance 4 months later i was made redundant and they paid me out as no official statements were made at the time i took out insurance. I was just working on a hunch and thinking better safe than sorry.

They were very easy to deal with and I highly recommend them. But of course you must make up your own mind.

lisyloo

Unlike the others I don't think being aware by rumour or suspicion counts for anything at all.

You have either been formally told about downsizing/redundancy or you haven't.
Anything else e.g. speculation following company results or loss of deals, is pure speculation.

Clearly you have to answer any questions honestly, but if you haven't been told anything then you don't know anything.
Speculation or rumour is not relevant.

Many insurers however do have a period when they won't pay out e.g. they won't pay out for the first 3 months after you take the insurance. this is to stop people ONLY taking the insurance when they think their company is going down the pan as that's not econommically viable for insurers.

If you are worried then pay special attention to this period because obviously you don't want a long period.

Lots of people are worried about their jobs right now and lots of companies are not seeing great results.
If you are worried because your company isn't doing great then you're in company with virtually everyone else in the UK and this doesn't mean you know ANYTHING.
Be careful to answer all questions honestly, but I suspect like many people you actually know nothing at all.

PNPSUKNET

I know in the firm I work, even higher up went before staff so means nothing these days