Redundancy - PPI will they pay

AD_1960

I have had a Mortgage protection policy for a number of years.

I was told that in some cases the protection policy will not pay out if I get a good redundancy settlement from my company. Is this true ?

If so do I have any case for a PPI Claim on this?

-taff

Not especially true no.
Are you paying PPI or are you paying MPPI?

What exactly are you paying?

magpiecottage

If you receive payment in lieu of notice your employment is not deemed to have ended until the date when you would have left had you worked your notice period. However, this is contractual, rather than redundancy pay.

"True" redundancy pay will not affect any claim on the policy.

dunstonh

I was told that in some cases the protection policy will not pay out if I get a good redundancy settlement from my company. Is this true ?

Redundancy pay does not impact on MPPI. However, Payment in Lieu of Notice (PILON) does.

Say your employer says they will pay you £20,000 redundancy plus PILON of £5000. Even if you stop working now, the PILON effectively means you are employed to the end of your notice period. So, the MPPI wont kick in until you hit that future date. The £20k in this example has no impact.