Unsure about income insurance?

immoral_angeluk

Hi all,

I've been looking at getting personal income insurance in case of loss of employment, sickness etc but I'm not sure if I'd be covered. All the policies I've looked at state loss of employment as redundancy and not being aware of any potential risk to your employment (impending redundancy etc).

My contracts at work are year to year rolling contracts due to the funding we receive (charity). Although if my funding ended I wouldn't be dismissed then and there, I would go into a redundancy pot with all the other staff. My current 'contract' term is ending March 2012 in line with other funding ending, but the nature of the work is that other funding comes up but that my role isn't redundant unless they go through a whole company redundancy process.
My guy feeling is that due to think income insurance wouldn't pay out as I'm on rolling fixed term contracts and theoretically could face redundancy year to year.

What do you guys think? Would it be a waste of money?

ACG

You will be fine.

So long as your on a rolling contract and your not aware of a lack of funding then there is no issue. I sell this type of policy to contractors on a regular basis and the question has come up a number of times. Theyre in a similar boat in that if no new jobs come in then effectively they are out of a job. The only people i wouldnt recommend unemployment cover to is those that are self employed.

Obviously check they paperwork first or even call and ask the insurance company your debating going with - see if they will put something in writing if your that unsure, ive done this for some of my clients in the past.

immoral_angeluk

ACG wrote: »

You will be fine.

So long as your on a rolling contract and your not aware of a lack of funding then there is no issue. I sell this type of policy to contractors on a regular basis and the question has come up a number of times. Theyre in a similar boat in that if no new jobs come in then effectively they are out of a job. The only people i wouldnt recommend unemployment cover to is those that are self employed.

Obviously check they paperwork first or even call and ask the insurance company your debating going with - see if they will put something in writing if your that unsure, ive done this for some of my clients in the past.

Well my current funding is under the Financial Inclusion Fund which is definitely ending in March 2011, but that doesn't neccesarily mean I'll be out of a job as there's all sorts of funding bids going through all the time. We actually went through a redundancy process at the start of the year because of the expected loss of the FIF funding in March this year, (before we were told it'd be extended) and I wasn't one of the ones who was to be made redundant anyway. So although I don't forsee any problems, the whole going through the redundancy process earlier this year has made me want to try and cover myself just in case!

ACG

That makes sense.

Clarify it with the insurer first but i think you will be alright.

immoral_angeluk

Thanks a lot, will get some quotes and give them a call

ACG

good stuff. Let us know if you have any questions after youve spoken to them.

immoral_angeluk

Cheers! Much appreciated