Redundancy Insurance - general thoughts?

GreenwichSi

Hi, due to the company I work for being taken over and everyone being moved into one office from various places around London, I'm beginning to smell "cost cutting" happening at one point and suspect "streamlining" may happen in the not too distant future.

So I spoke to an advisor yesterday and he suggested I go for a policy with Liverpool Victoria which combines sickness cover and redundancy insurance for a cost of £86 and change a month. For this I get £1700 a month for a year after (if) I'm made redundant which, although, less than what I get paid a month is enough to cover mortgage/food etc.

My question is, does anyone know if this kind of cover is worth it? £86 a month is quite a bit but then knowing I'll be ok if I get made redundant would give me peace of mind. Anyone got any thoughts, taken out similar cover?

movilogo

£86 is quite a bit and these insurances have lots of loopholes. If payment starts after 1 year, how do you manage during that time? You must have to find a job by then. In that case they won't be paying anyway.

Also, they might say you knew you might be made redundant following takeover, in that case policy will be void.

The only job security is your own ability.

GreenwichSi

Sorry - payment starts after 2 months FOR a year. Good point about me "knowing" even though I don't, I just suspect due to being paranoid! I have all the docs to read so shall peruse them on the train home.

InsideInsurance

ASU tend to be short term, normally paying a maximum of 12 months. Whilst movilogo is wrong in saying the policy would be void they are correct to question the issue of you having fore knowledge of the possible redundancy and therefore a claim may be rejected. Certainly the claims department my ex worked in would have rejected the claim but ultimately it comes down to the wording of your policy - they had a term about "possible knowledge" and a recent merger was an automatic rejection.

Certainly the figure you've been quoted feels high for ASU but ultimately it depends on your details, the T&C, length of cover etc.

ACG

If you think there could be redundancies its worth getting cover before its too late.
So long as nothing has been mentioned then you dont know so you should be fine.

£86 seems quite a lot but ive not done redundancy cover in a while so i cant be sure.