Looming redundancy and MPPI- Timing

ferry

We received a letter following a meeting suggesting my role is at risk of redundancy.I understand its a bit like 'locking the door after the horse has bolted' but naturally looking and how to cover the mortagage payments. 
Am I too late to qualify for a mortgage payment protection product? 

Thanks

Marcon

ferry said:

We received a letter following a meeting suggesting my role is at risk of redundancy.I understand its a bit like 'locking the door after the horse has bolted' but naturally looking and how to cover the mortagage payments. 
Am I too late to qualify for a mortgage payment protection product? 

Thanks

One of the questions on the proposal form will cover exactly this scenario - so you'll either be turned down immediately (most likely outcome) or the premium will be so exorbitant as to be unaffordable.

gm0

Yes.  You don't want to insure a risk pooled with others.  You want to pay a small premium at the end, too late, to obtain a large benefit.  They won't insure you if you declare honestly.  And if you don't then sad as it is to say - It's fraud

You may also find that "no claim within the first x months clauses"  prove rather unhelpful in policy terms and conditions.  This sort of thing is sometimes done to catch people who have caught wind of something happening but not actually had the letter. Stop them from trying a variation on what you are asking about.  But where their fraud would be harder to prove (no letter yet).  What a co-incidence I had suddenly realised I should take out insurance.  It was almost - prescient.

It's difficult. As with sickness/critical illness and anything beyond basic life cover. This kind of insurance is expensive to carry for years at a time.  But it doesn't work as insurance if the pool is only people who are being made redundant - complete adverse selection.

Rather than this dead end - more profitable to look at other angles for managing the buffer of time spent seeking alternative employment

- Interest only or a temporary mortgage freeze by arrangement with lender rather arrears via non-payment.
- Consider changing to a longer term and dropping payment to make reserves (and any redundancy) stretch
- Making sure ad hoc credit lines in place while salaried if not already well supplied with such

Depending on the size of the redundancy pool and the reasoning behind it. 
Being "in the pool" isn't the same as definitely going.

Good luck

DullGreyGuy

ferry said:

We received a letter following a meeting suggesting my role is at risk of redundancy.I understand its a bit like 'locking the door after the horse has bolted' but naturally looking and how to cover the mortagage payments. 
Am I too late to qualify for a mortgage payment protection product? 

The term normally used in insurance circles is "betting on a race thats already been run" given that arguably insurance is a form of gambling 

You will probably struggle to buy PPI/ASU at this point because of the looming redundancy, even if you were able to buy a policy today it won't cover for this potential redundancy as you've already been advised you're at risk before buying the policy. 

One of the multiple issues with PPI is that its underwritten at the point of claim not the point of purchase so if you are able to find a provider where you can buy it today dont imagine you've found a loophole, its just they do all their checks when you make the claim which helps keeps costs down but leaves you with uncertainty on what's covered and not.