Advice re: redundancy cover

catralense

I've been humming and haahing about possibly cancelling my husband's redundancy cover, and using the monthly premium to either stash in a savings account, or using to it pay off our debts more quickly.

We pay £75 a month to the post office. In the event that my husband were to be made redundant it would pay out £1000 a month for twelve months which would undoubtedly be better than nothing, but is only half of his monthly income at the moment. As you can see from my signature - we have A LOT of debt at the moment and are paying out approx £800/month on minimum payments.

My husband works in the aerospace industry and in the past six years there have been one or two redundancy scares that he has, so far, come through with his job intact. He is a lot older than me - he's 54 - and I wonder if that'd make it difficult for him to find a job in the same industry at his age. I earn a little bit less than him, but there is always the opportunity for me to work extra hours to bring in more money if needed, although I couldn't earn enough extra to cover the shortfall if he lost his job and was receiving a payment of £1000 from his redundancy cover.

However, £75 feels like such a huge amount when it could be put to better use. We've been paying it for over 6 years now - and I feel a bit pig sick about continuing to pay this every month without (hopefully) ever benefiting from it.

Anyone have any thoughts on this?

Tixy

Always a tough decision.

Have you shopped around to start to see if this is a competitive deal still? to see if you could get it any cheaper elsewhere? Perhaps worth doing that first before you make a decision?

Also do you know what redundancy lump sum he would be entitled to if he was made redundant? (either from his contract or just based on the statutory amounts if his contract doesn't state anything different).