Redundancy and Insurance

steven0121

Hi All, I have been put at risk of redundnacy today, I have a policy that protects my outgoings, however, one of my outgoings is for a car repayment. This loan is actually in my mothers name (the car is registered to me) as i was unable to get the loan in my name at the time. Will the insurer pay out this? Im really worried as my mother is now retired and relys on this money to live on? also will this make my entire claim invalid?

langsmith

Hi, re 'I have a policy that protects my outgoings'. You may wish to elaborate a bit more, what type of policy is it and does it guarantee a set sum each month - like MPP insurance?

If the loan is in your mothers name then she is responsible for the loan repayment but if your 'policy' pays you a fixed sum, you'll be able to cover it from that maybe.

At the moment, you are only 'At risk' what timeline in days have you been advised, as most policy's only pay out after 30 days post redundancy. Note - If you get payed any notice period i.e. 3 months notice, then the 30 days will be post that too.

steven0121

Hi, its Payment protection insurance (IPPI) with columbus direct. It says you can protect you income and quote

"with the monthly benefits acting as a replacement for your income. You are free to spend the money on rent, bills, mortgage repayments, groceries or anything else you wish for that matter.",

but when i breifly spoke to them to make sure my outgoing were still accurate and true, i got the impression that they will want me to prove each outgoing, like a bank statement. All bills are on my bank statement except this loan, which i pay in cash to my mother each month.

My last working day will be April 14th. Thanks for replying.