Advice needed on how to make the best of a looming redundancy

invisiblecabbage

Hi, my husband has been made aware that his workplace will be closing in November of this year. Will that mean redundancy? Also as there has been no formal announcemnt on this agenda yet is he able to put some payment protection in place to cover our current financial outgoings? And finally, if he was to purchase a new car now is there a way he can take out some sort of insurance so loan for car gets paid if he is made redundant? I ask this because 20 years ago a friend had just bought a new car on hp and then out of the blue was made redundant. Somehow the car loan was paid by a policy. Unfortunately friend no longer around for us to ask how he managed this.
Thanks in anticipation.

nicola302

invisiblecabbage wrote: »

Hi, my husband has been made aware that his workplace will be closing in November of this year. Will that mean redundancy? Also as there has been no formal announcemnt on this agenda yet is he able to put some payment protection in place to cover our current financial outgoings? And finally, if he was to purchase a new car now is there a way he can take out some sort of insurance so loan for car gets paid if he is made redundant? I ask this because 20 years ago a friend had just bought a new car on hp and then out of the blue was made redundant. Somehow the car loan was paid by a policy. Unfortunately friend no longer around for us to ask how he managed this.
Thanks in anticipation.

I am no expert but if it is not public knowledge i.e. he hasn't had a letter stating he will be made redundant then he doesn't know for certain, then you won't be lying on any forms, i am in the same boat, company closing down in September-13 unfortunately my company were very quick in getting letters out and making it formal, i.e. we all got confirmation letters a year in advance of redundancy.

maybe try and go through an online form and see what sort of questions you will be asked...

Xbigman

If you buy a new car now you have to make the payments for the next 10 months, a period when you should be saving money and not spending it. What if the redundancy gets put back until next year? Can you keep making the payments for those extra months?
Even if it worked then most insurance is based on making payments for you for a period of time and not paying things off. And remember, any agreement linked to the car will include keeping it in good order. Will your dole money stretch to main dealer servicing, fully comp insurance or fuel?

Income insurance is a slightly better idea but is difficult to pull off in this scenario. If there is a change in circumstances that might mean you reconsider your insurance needs, or you go through an advisor who can show why it was advised, then it can work. If you suddenly just take it out a few months before an official announcement, possibly along with lots of other people from the same company, you will find the insurance company won't be as stupid as some people think.

Now if you want sensible advice. Start making a serious effort to find another job now. Do as much overtime as possible. Pay off every debt you have and then start saving. Thats a financially and morally better idea.



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