income protection, hypothetical question

bs7

if a company has already had a redundancy process, does this preclude ASU for other remaining employees?

i guess it depends on the way in which knowledge of forthcoming risk to one's job is looked at - granted the objective risk may be greater, but subjectively, if one hasn't been made redundant then one could could argue there is no knowledge of any further risk - especially if the employer advises that positions are now safe.

Any thoughts?


i've been spending hours looking at income protection, ASU and PHI and no further forward.
- i guess i'd prefer a 90 day exclusion period, and 0 or 30 day deferred payments
BUT quotes range from under £40/month with britishinsurance for ASU, to £42 with protectyourbubble for unemployment protection with 12 months short term AS, to £54 for unemployment protection with pruprotect, or £33 or £44 for U or ASU respectively via keystone (with free first premium (presumably being offered by the online broker)).

I note that there are differences between each of these policies but any advise would be gratefully received - after a while all the terms and conditions start to blur into each other.

Also - at those sort of premiums - is there any point going via an IFA to see if better deals are available?

Thanks in advance

kingstreet

The important thing here is not the premiums, but your ability to answer the questions asked, in such a way that you have a chance of a claim being paid if you do lose your job.

Unemployment cover is totally underwritten at point of claim, so it's possible you could pay for cover then end up getting nothing when you most need it, because you didn't satisfy some strange requirement at point of sale that you weren't aware of.

There are however some questions at the outset that you need to be able to answer and these answers will be the first things checked by the insurer in the event of a claim.

I would almost certainly do this via an independent using the advice process, as no-one is going to put their neck on the line to sell you unemployment cover you won't be able to claim on.

kingstreet

As an example, Paymentshield has recently returned Unemployment only cover to its MortgageProtector contract.

First point of qualification is you have to be taking out a new mortgage or have done so in the last thirty days.

Then you are asked "if you are currently aware of any circumstances which may result in you making a claim under this policy?"

Next, "Are you aware of any circumstances where a) you have received formal or informal notification that your own job might be at risk, or, b) your employer has formally announced its intention to make cuts to its workforce?"

Finally "Is your company or the company you are employed by, either currently in, or has it announced formally or informally, it is going into administration, receivership or liquidation?"

In cost terms, £500 per month unemployment cover, after 30 days, backdated to day one and payable for upto twelve months sees a monthly premium of £26.33.

It is going to need some sharp skills to consider the questions you will be asked and be able to guide you through them with the requisite honesty and accuracy.

bs7

Thank you for your help.

It's sounding increasingly likely that it may not be possible to find a policy that would apply then. Using your example, "Are you aware of any circumstances where a) you have received formal or informal notification that your own job might be at risk, or, b) your employer has formally announced its intention to make cuts to its workforce?" In my hypothetic example a cut to the workforce will have been made, or indeed in the immediate future will be (albeit a slightly different role - training role rather than 'full' position).

Am i potentially wasting money (and time) by looking at this option at all, or is there any hope of a policy potentially applying?

again - thank you

kingstreet

Instead of going through quotes and premiums, you're going to need someone to sit and sift through the qualification questions for you. It's only like trying to get life cover with a health condition, so don't worry about putting it into the hands of an independent.

Whether you pay a fee or agree a deal where the IFA gets commission, it will be a few hundred quid very well spent!