quick question

moneydon_2

my current employer will be making a number of cuts in a few months time which may include a redundancy for me.....Should I take out income protection or a form of PPI as I have not been told I will be made redundant as of yet?

dunstonh

moneydon wrote: »

my current employer will be making a number of cuts in a few months time which may include a redundancy for me.....Should I take out income protection or a form of PPI as I have not been told I will be made redundant as of yet?

Too late. Once it is known about impending cut backs, you cant get insured for that event.

magpiecottage

If you give me £1,200 then if you get made redundant in the next 12 months I will give you £100 a month whilst you are unemployed for a maximum of 12 months.

In all seriousness, an insurance company will need to cover its running and regulatory costs and make a profit - and with interest rates so low, it could not even get anything significant by putting it on deposit.

So it would probably need to charge people in your situation as much as it would pay out to be commercially viable.

moneydon_2

so its not worth while getting any type of income protection now?

moneydon_2

dunstonh wrote: »

Too late. Once it is known about impending cut backs, you cant get insured for that event.

yes?...even if technically nothing has been discussed at present? or nothing has been declared by the management?

Insider101

moneydon wrote: »

so its not worth while getting any type of income protection now?

I think you've misunderstood your product types. Income protection covers your income if you are unable to work long term due to accident and sickness.

If you are talking about redundancy cover then policies will not cover any unemployment which is known about or suspected at the time of taking out the policy. They will also generally have a time frame from the date of taking the policy where you can't claim on it for unemployment. The reason is to stop people doing what you are suggesting and taking it out once they know they are at risk of redundancy. They only want to insure people who are average or low risk. If someone claims in the first few months you can expect them to be very vigilant about speaking to your employer and ascertaining when the cut backs were first discussed.

Insider101

moneydon wrote: »

yes?...even if technically nothing has been discussed at present? or nothing has been declared by the management?

If it hasn't beeen discussed then how do you know they are planning redundancies?

moneydon_2

and that was the answer I needed tbh....all this redundancy and Income protection insurance is uncharted territory to me and I suppose I need to be more savvy in the future

although I do recall my father receiving his monthly income when he was made redundant and that was from his ppi

moneydon_2

Insider101 wrote: »

If it hasn't beeen discussed then how do you know they are planning redundancies?

not discussed in as much as they have stated the company is downsizing its operation including my dept but not highlighted me or A N Other as a possible casualty.....anyway I have decided not to bother with the income protection at this stage

Nasqueron

moneydon wrote: »

and that was the answer I needed tbh....all this redundancy and Income protection insurance is uncharted territory to me and I suppose I need to be more savvy in the future

although I do recall my father receiving his monthly income when he was made redundant and that was from his ppi

PPI is intended to cover (or partially cover) bills following redundancy or ill health (depending on policy) but it has to be in place before any mention of redundancy - soon as the company finds out your employer has discussed it even in part they will reject a claim from you if you took it out after this was mentioned by your firm

dunstonh

although I do recall my father receiving his monthly income when he was made redundant and that was from his ppi

Redundancy cover is a PPI policy.

not discussed in as much as they have stated the company is downsizing its operation including my dept but not highlighted me or A N Other as a possible casualty.....anyway I have decided not to bother with the income protection at this stage

The wording is typically are you aware of any forthcoming redundancies or a company restructure etc. The restructure wording would cover that and prevent it.