Redunancy Insurance.

ixwood

My global company has been relentlessly exporting jobs to cheap countries for the last few years (and paying the fat cats millions for doing it), and it shows no signs of stopping. I have no immediate reason to think I could be made redundant, but I'd like to bet on it happening within a year or 2, so I'm thinking about taking insurance.

What's the best policy? Any recommendations?

How much should I be looking to pay and what sort of payout is normally included?

lisyloo

so I'm thinking about taking insurance

I would suggest you consider

1) What redundancy package you'd get (at least statutory minimum but you may be entitled to more if it's in your contract).
2) What savings you have to get through.
3) What income you'd need e.g. do you have a working partner that could support you at least partially if not wholly.
4) What demand is there for your skills i.e. how quickly could you find another job in your location.
5) What state benefits you would be entitled to.

Once you've decided these things then you can decide whether insurance is a good idea.

what sort of payout is normally included?

It depends on how much you specify.
Obviously it's more expensive the more you specify.
I think you need to go through the steps I specified above to work out what you would need as over-insuring will cost in terms of higher premiums.

Now may be a good time to organise your finances if you haven't already done so.
It may be a good time to re-mortgage if you aren't tied-in because you will not be able to do so if you are out of work.
It may also be sensible to put by any spare cash you have into either reducing loans or increasings savings/ISAs.

I don't recommend living like a hermit on the basis of speculation but being sensible and getting organised won't be wasted effort.

BTW - You may also want to consider trying to move into a posistion where you are less likely to be off-shored. I work in IT and development has been largely offshored, but I work as a consultant and my native English and the fact that I can easily travel to my customer (without thousands of pounds worth of flights and delays getting visas) means that I will remain employed. Start to think longer term about your career and try if possible to move towards a posistion which needs to be done in teh UK. If you are made redundnant then consider this when you are applying.

lisyloo

Just thought I'd add - if you do end up out of work then definitely claim FSA (job seekers allowance).

You won't get an means tested benefits like income support) if you have a partner that's earning a decent amount, but JSA is not means tested and if you have paid your national insurance contributions (for 2 years I think) then you are entitled to JSA regardless of any other income.

JSA isn't much but you also get your National Insurance contributions paid for you which is quite important when it comes to getting your state pension (adn other benefits), so make sure you claim it to keep up the continuity of your NI.

ixwood

Thanks, that's great.

1) What redundancy package you'd get (at least statutory minimum but you may be entitled to more if it's in your contract) - Think my comapany usually does at least 2 weeks per year and I'll have been there 10 years soon. Is it Tax free?
2) What savings you have to get through. I have around 6 months salary saved. It's really my IO mortage cash, but a spendable reserve if the worst come to the worst.
3) What income you'd need e.g. do you have a working partner that could support you at least partially if not wholly. I'm single. If I wasn't working, I'd need maybe 1500pm. Would I only get paid anything if I didn't get another job?
4) What demand is there for your skills i.e. how quickly could you find another job in your location. I'm a Developer in Northampton and there always seems to be a few jobs around at least. I could go to MK if needs be. I'm also seriously considering contracting.
5) What state benefits you would be entitled to. No idea. I've never claimed anything and have always had a job. So probably nothing!! lol

My finances are generally in reasonable shape. No other debts apart from mortgage. And I can't remorgage that until next year without paying penalties. I'm hoping rates may have dropped a little by then and to go for a long fix.

As a Analyst developer, I do end to end projects, so not as exposed as a straight coder woudl be, but still the trend is towards cheap countries. I'd consider running my own little business, or contracting.

In terms of being overcovered, that's what I want. lol I'm not usually one for insurance generally (boilers, appliances, lightning strikes etc), but I want to make a bet on being made redundant basically.

What'd good relatively expensive cover cost and payout?