income payment protection

poe.tuesday

I am wanting to get an insurance that will pay my mortgage and cars/loans etc should I loose my job, after seeing a good friend of mine loose his job and then nearly loosing his house I think its a wise move to make to protect myself if I should loose my job

I know nothing about this type of insurance, I already have critical insurance with my life insurance so should I be ill I am covered but I am not covered if I loose my job

Can you advise on who is a good company to go with, what I should be looking to cover etc

thanks

InsideInsurance

poe.tuesday wrote: »

I already have critical insurance with my life insurance so should I be ill I am covered but I am not covered if I loose my job

Critical illness only pays out on certain conditions and only when they are at a certain severity. There are plenty of other conditions and issues that may mean you need to take months or years off work that arent covered.

What you are currently asking for is ASU insurance which is the budget version of Payment Protection as it only pays out for a maximum of 12 months (a few do 24). It is also not underwritten and so you only really get covered confirmed when you make an actual claim.

The price difference between full ASU and just Unemployment insurance is tiny for many and so for the sake of a pound or two a month its worth getting the full ASU.

The "proper"/ full fat version of income protection is PHI however this will not cover unemployment situations, only accident/ sickness. This is underwritten and pays out until your specified date (normally your 65th birthday) rather than 12 months

OshayAway

There are a couple of insurers that will allow you to bolt on unemployment cover if you have a term assurance product like life, critical illness or income protection (PHI).

There is also a 'hybrid' type plan from LV= which combines the features of PHI as described by InsideInsurance, with optional unemployment cover which will pay for a total of 36 months (any single, individual claim up to 12 months).

poe.tuesday

excellent, thanks for this - also, does it cover all sorts of unemployment or just through redundancy as I am mindful of the new rules about employers having two years now if they want to get rid of someone without a reason and as I am in a new job I want to ensure that I am covered (not that I fear I will be asked to leave or anything like that but you just need to have all bases covered)

InsideInsurance

Need to read the terms, normally it is the same as benefits in that it covers anything other than:
Gross miss conduct
Voluntary redundancy
Compulsary redundancy that you knew about before buying
Resignation

Normally if someone is gotten rid of in the first 2 years it is not any of these because they open up the possibilities of tribunals against the decisions but in theory they could be.

The complication can be if there is a gap in employment, you may then have a minimum service before the benefit is in place again. If it is continuous and you just switch jobs (finish on Friday, start new job on Monday) then it tends not to be a problem. Again read the policies in question

poe.tuesday

are there any companies you recommend as looking at the quotes its going to cost me from £80 to about £120 which is fine but naturally I would want a company that has a good rep

InsideInsurance

ASU - no, its a very basic product and all tend to be fairly similar just make sure you understand the terms

PHI (with or without an unemployment bolt on) - then I would recommend speaking to a protection insurance specialist (broker or IFA), especially if you have any pre-existing conditions etc

poe.tuesday

I dont have any conditions so hopefully it will all be simple - its more the unemployment thing I want to get covered as I have seen too many people loose their jobs and nearly loose their homes etc too

burnsguitarman

We have a policy with paymentshield, who have been great with our claim for unemployment cover. https://policyholders.paymentshield.co.uk/mortgage-protection.aspx

poe.tuesday

thanks for everyones help - I will get in touch with payment shield and get a quote