Advice on whether to take cover or not

harrisc0

Hi - apologies if this has been asked before.

Hubby works for a company who his contract is with and their contract is with a large blue chip company that has been on the news recently as they are closing down. Hubby has not been served redundancy notice yet which would be 3 months as his job role under the companies contract to the blue chip company still stands, however it will not for much longer - couple of months at the most we fear until he is served his 3 months. So my question is IF we took out an income protection policy now and paid about £50 a month for £1300 a month payments for a year to protect our mortgage and debts would we be covered as we would be taking it out before he was served his notice.

Many thanks

McKneff

I believe, if its been on the news and its common knowledge you are too late to take cover.

Had it just been a little rumour, that may have been different but as it is, then no.

Sorry

harrisc0

We thought that could we not argue though that we hoped the company he worked for would possibly be deploy him onto another contract?

McKneff

There will be questions on the form which you would have to answer honestly,

#We hoped' wouldnt wash I'm afraid,because it's not something positive.
Has he worked for them long.
All I can suggest is that he starts job hunting as soon as

Good luck

lady1964

I took income protection insurance about a year ago when we (colleagues) realised that cuts in the area of public service we worked in were growing. At that point, we had received no kind of notification that we were under threat. We got our first formal communication 2 months later, then went into 3 months consultation a month after that. We (approx 20) were made redundant at the end of July, around 9 months after we took out the insurance.
When I sent off my paperwork, I received a phone call from the insurers and one of the questions I was asked was 'did you have any knowlege that your job was at risk when you took out the policy?' I could genuinely answer 'no' to this question as we hadn't had anything formally in writing or even definate rumours at the time I took it out.
So, to answer your question, I would say you are too late and it's not worth the risk of taking it & the fact that there have been items on the news will alert any insurance company, if not straight away then eventually.
Sorry but I do hope your OH gets something very soon.