Should I take out redundancy protection policy (coronavirus)?

GarciaLorca

Hi,
I'm worried about the outbreak of coronavirus and that we are heading into another 2008 crash.  I work in professional services and concerned there will be a slow down.  Would it be worth taking out a redundancy protection policy at this time?  Interested in the pros and cons. 
Thanks 

p00hsticks

I'm no expert, but I'd be surprised if you took out a policy now that you'd be covered, as it's something that's already likely to happen

Gonna-be-debt-free

p00hsticks said:

I'm no expert, but I'd be surprised if you took out a policy now that you'd be covered, as it's something that's already likely to happen

But doesn't that imply that they will just stop selling it?  OP doesn't *know* that business is going to be affected.  I'm just curious as to how it would be excluded.

dunstonh

But doesn't that imply that they will just stop selling it?  

No. As people may suffer other illnesses in the future or redundancy in the future.    

OP doesn't *know* that business is going to be affected.  I'm just curious as to how it would be excluded.

If you know of an event or issue that could lead to redundancies then usually that means you are not covered until that has passed.  

Gonna-be-debt-free

So essentially people could take out redundancy cover now, but are unlikely to be covered if their employer goes bust within the next year?  (I'm not being facetious, but possibly am being unintentionally thick)

GarciaLorca

Gonna-be-debt-free said:

So essentially people could take out redundancy cover now, but are unlikely to be covered if their employer goes bust within the next year?  (I'm not being facetious, but possibly am being unintentionally thick)

I don't think an insurer would be able to refuse - it seems totally tenuous to say that redundancy as a result of coronavirus was a known event.
Any one else with any suggestions?

paddyandstumpy

GarciaLorca said:

Gonna-be-debt-free said:

So essentially people could take out redundancy cover now, but are unlikely to be covered if their employer goes bust within the next year?  (I'm not being facetious, but possibly am being unintentionally thick)

I don't think an insurer would be able to refuse - it seems totally tenuous to say that redundancy as a result of coronavirus was a known event.
Any one else with any suggestions?

It's an unprecedented event effecting every economy in the World. I'd be surprised if any insurer would be willing to accept new applications for this type of cover, for the foreseeable. 

You said in your OP:
"I'm worried about the outbreak of coronavirus and that we are heading into another 2008 crash.  I work in professional services and concerned there will be a slow down.  Would it be worth taking out a redundancy protection policy at this time?"

As you feel there is more than a chance this may effect you, I think you'd struggle to claim suggesting you coincidentally decided to take out redundancy insurance on the brink of the country being forced into lockdown, and the resultant impact it may have on your job. 

dunstonh

GarciaLorca said:

Gonna-be-debt-free said:

So essentially people could take out redundancy cover now, but are unlikely to be covered if their employer goes bust within the next year?  (I'm not being facetious, but possibly am being unintentionally thick)

I don't think an insurer would be able to refuse - it seems totally tenuous to say that redundancy as a result of coronavirus was a known event.
Any one else with any suggestions?

For people that already have PPI, then this is not an issue.
However, the thread is about someone considering buying it now.    A very different scenario.

garth549

I haven't checked but it's likely most products are either suspended or have amended T&Cs so they won't cover redundancies that are a result of a downturn due to the pandemic.

Gonna-be-debt-free

Interestingly I received my policy documents through today.  It took a while so I assumed they were just going to reject the application. 
I did apply before everything really kicked off, and was going to get the cover anyway as a long term thing (been meaning to put it in place for ages). There are no specific exclusions around coronavirus, but of course it is probably excluded under existing standard terms like "No unemployment claim will be covered if you were aware/notified of impending unemployment (or in our reasonable opinion you should have been aware), at the policy start date or within the initial exclusion period".