Redundancy cover limitations (benefits, etc)

redonion

OK, I'm not actively looking for redundancy cover yet, but I just made myself curious by asking my last question so here I go:

I read a post by somebody on here (I can no longer find it) that said that his redundancy policy stopped paying out after 12 weeks or so, when he expected it to pay for up to 12 months. In his case he said that was because if the benefits office said that he had to take a job, the insurance stopped paying out.

I realise that these policies can vary quite a bit, but what are some common limitations like this, that are not necessarily immediately apparent from the sales pitch?

What are some products that are on the less limited end of the scale? I'm sure it'll be easy to find the ones on the other end of the scale, because if they're cheap they'll be quite limited - but if they're expensive, they might just be expensive!

InsideInsurance

Policies require your form to be stamped by the benefits agency. If the benefits people saying you are intentionally depriving yourself of employment by not taking jobs available then most insurers wont pay out.

ASU tends to be a basic policy and therefore for the "U" part doesnt tend to have the concept of a like for like job - though there evidently may be some that do.

redonion

OK, so especially in times like these - and only getting more so in the forseeable future, it's hard to see how a policy like this is going to pay out for more than 3 months, right? If you haven't found a job in your previous occupation, or whatever new occupation you decide to aim for instead, you'll be packed off to McDonalds or whoever might hire you in a job that you might view as a mistake in the long-term, and that'll be the end of your insurance payout.

Maybe that's still useful, but it obviously makes a big difference to how much this is worth.

I'm still very much interested to hear what other limitations people run into with unemployment cover, by the way.

forgotmyname

But 3 months worth of payouts maybe better than just getting benefits.