I Want Redundancy Insurance!

Newtoinsurance

Hello everyone - I want insurance to cover me in the event that I am made redundant. With all the scares about mis-selling, can anyone offer advice on what to look for / avoid and any recommendations?
Thank you

dunstonh

With all the scares about mis-selling, can anyone offer advice on what to look for / avoid and any recommendations?

Nothings changed. It is the same products. However, the issue was never about the product. It was the distribution of it by certain providers (banks mainly).

Recommendation of a provider/product is a regulated activity and as such, those of us in real life that can do such a thing cannot do so on the board (the regulator would treat posts the same as they would verbal or written advice). We can only discuss or comment. Be wary of cheap providers that cut back cover to be cheap. Price is no guarantee of quality but if you go for the cheapest, chances are it is cheap for a reason.

InsideInsurance

What you want then is an Accident Sickness and Unemployment (ASU) policy or the same for just Unemployment.

These tend to be fairly basic policies which are non-underwritten at point of sale but instead all the checks etc are done at the point of claim. This can of cause mean you think you have cover but it turns out you dont at the point of it being too late to do anything about it (but for unemployment it is less of an issue -v- sickness)

As to what to watch out for? Not much really, they are basic policies, especially the U part. Most payout for a max of 12 months but a few do a 24 month period. Limits tend to be the lower of 60% of gross monthly pay or about £3k which may not be enough for some higher earners.

The two biggest reasons for U claims being declined are either because the person was sacked for gross miss conduct (no cover), the person is alleged to have known about impending redundancies prior to buying the insurance or they are temp workers and they dont meet the length of contract requirement.

Naturally if your self employed then unemployment policies either exclude cover or have an additional set of requirements to show you have truly become unemployed