Redundancy insurance question.

Cyril

I am interested in taking out a redundancy protection policy as income replacement incase I get made redundant.

A couple policies I have looked out do not pay out until 6mths after your redundancy date so how am I supposed to manage for those 6 months if the worst happens.

Are they all like this nowadays.

Linda32

Hi,

I'v got a policy at the moment which I'm claiming on. Mine pays out after 30 days of unemployment and goes back to day one.

Six months is hardly worth the bother IMO, check out the main site^^^ these bound to be one recommended.

p00hsticks

Cyril wrote: »

A couple policies I have looked out do not pay out until 6mths after your redundancy date so how am I supposed to manage for those 6 months if the worst happens.

Well, depending on circumstances, a person would have their redundancy pay, and also be entitled to contributions based Job seekers Allowance for that first six months. And it's always recommended when you're working that if you can you try to put aside savings equivalent to six months salary for a rainy day - which this would be.

Presumably the policies that pay out straight away will be more expensive than those that don't pay out for six months, so for people who are likely to get a reasonable lump sum payout on redundancy, the latter might be preferred.

lady1964

Hi,
Several of us at work took out income protection insurance for redundancy last year, we all took it with Barclays. We all did it online and we could choose how long to defer payment for. A couple of people did no deferment, meaning they could claim straight away, I took a 30 day deferment, so when I was made redundant at the end of July, I had to wait until the 1st of September before I could claim and it's now paying out on condition that I send copies of my bank statement showing my JSA has been paid in.
Hope that helps.