Recommendations for income protection/redundancy cover

fairy2

Hi. I am interested in taking this out. I do not have to have the associated sickness and accident cover but understand that often this means that premiums are less. Many of the policies I can find on line have a max cover of £1500 - do some companies offer higher cover? Or am I able to take out 2 seperate policies for this amount (although I suspect this will work out more expensive). I understand this area is a minefield in terms of claiming on this so it must be important to go for a firm with a good track record in this. It is quite difficult to navigate around this area as a layperson. It would be great if someone had any leads they thought it worth exploring etc. Many thanks.

ACG

Im not sure what the maximums are on ASU policies as i dont really sell that many ASU policies.

I do however sell a lot of Income Protection (Also known as PHI). There are generally not any limits on that...until you start getting to a very high income. PHI will pay out until the policy ends or your retirement date so there is no limit to how long it will pay out for. It would only pay out for sickness though not for redundancy cover, if you went down that route you would need a seperate redundancy policy.

ASU policies generally only pay out for a maximum of 12 or 24 months.

Why not book an appointment to see a mortgage or financial advisor? They can discuss everything with you and look for what it is your after and get some quotes etc?

fairy2

I am looking more for the redundancy cover in case I lose my job and have a gap finding another one rather than the accident/sickness cover so it is not the PHI I am after I think. I tried one FA wh coud only find me one quote which makes me think he did not have too many policies to offer. Thanks.

kingstreet

I've just had a quick look and Paymentshield's Income Insurance allows Unemployment-only cover upto £2k per month (max 65% of gross monthly income).

Its Mortgage Payment Protection does potentially cover more, but that will be subject to the size of your monthly mortgage payment.

There's probably more in the market. You'll need a decent whole of market or independent adviser, not the single-tied salesman you appear to have encountered so far...

weejonnie

Unemployment only cover is not much less than combined ASU as insurers are worried about selection.

There is a policy that can cover up to £3000 or 90% of takehome pay - Google "accident sickness unemployment keystone"

Obviosuly you have to qualify and there will be an initial exclusion period where you won't be covered if your job loss is announced (even if the actual redundancies take place later)

iprotect

I am an expert in the type of short-term Income Protection Insurance/redundancy cover you are looking for. My suggestion would be to look beyond pure unemployment cover as experience shows that you have far wider choice of providers and premiums if you go for Accident Sickness and Unemployment Insurance (ASU).

To prove this; check out to independent and unbiased Money Advice Service website. Look at their price comparison tables for Payment Protection Insurance, select a comparison from all providers of Mortgage Payment Protection Insurance (MPPI). Their web site is a bit complicated, but worth perservering as you will be amazed at the wide range of prices for the same cover.

You may not be aware that the claims paid out on this type of insurance are split 60/40 in favour of unemployment. This still means that 40% of claims are for accident and sickness, the tiny extra premium for accident sickness and unemployment (ASU) is well worth paying in my opinion.

You will find short-term income protection supplied by the same providers by and large for a little higher premium than MPPI.

Most of the popular/low cost on-line providers where the competition and premiums are lowest have a limit on the maximum monthly benefit of £1,500 per month. This is because this cover is designed to supplement your savings to pay the biggest bills. It is also paid in addition to State Benefits so the insurers are frightened to offer too much cover just in case their policyholders have no financial incentive to get back to work / find another job!

If the (cheaper to buy Mortgage Payment Protection Insurance) will meet your requirements make sure you read the MSE Guide to Mortgage Insurance. It is excellent and gives you all of the critical information you need to save money.

My final suggestion is to look for an insurer that underwrites at inception; that is when you take out the policy and not only when a claim occurs. It is the later where you will find nearly all of the grief around claims. It is simple to tell the type of cover you are applying for. If the apply process is quick and with minimum questions beware! What you are looking for is a provider that asks comprehensive questions about your job/employer and says your application will be considered and the company will come back to you (usually in 2-3 days) to confirm you are on cover - this signifies underwriting at inception and as a bonus they are also some of the cheapest around as by being selective they can charge less.

Gary_SSS

Careful claiming on these Redundency insurance policies - i claimed for PPI when i was made redundent - and even though it stated i could be covered for up to 12 months or until i went back to work youo geneerally have to sign on for Jobseekers allowence - Job seekers allowence gives you on 13 weeks to find a job similar to the one you lost and the salary you were on at the time - After 13 weeks if you are able bodied and Macdonalds offer you a job at minimum wage Jobseekers tell you to take it - hence the end of your insurance cover!!!!! I got stitched up like this... I would NEVER have reduendency cover again... cheers.