Having just finished (and come out unscathed) the recent collective consultation process, I'm considering what would happen if I was (a) made redundant ofr (b) (as I suspect will happen more and more) managed out on a performace criteria basis.
I need to be able to pay the mortgage while trying to find another job. Would this sort of insurance cover this and is it VFM?
Cheers
Check very carefully the benefits of the insurance and look at the cost of the premiums. Some don't pay the first few months, some only pay for a few months, some only pay interest or a % of the mortgage, some use such blanket exemptions that almost no one qualifies for the payout.
There is no such thing as a poor insurance company.
It might be worth it but check very carefully
Thanks TJ. Useful advice (and not a mention of joining a union..!).
i the post offices income protection insurance
it had the right benefits and costs for me but I am self employed and was only really looking for short term cover through illness
Took out mortgage insurance during December, being in the house building industry i started to get a bit unsure of future works.
I took it with Legal and General and it covers accident, sickness or unemployment. Policy is for 140% of my monthly mortgage payments, so i pay £32 monthly and would receive £738 monthly if i was made redundant. You have to wait 120 days after vtaking out the policy before you can claim redundancy cover, sickness and illness cover is immediate.
Cover is only paid for 12month period.
The money would cover my mortgage and one of my motorbike loans, so it would keep me ticking over for a while.
Do you intend to stay out of work if you get laid off?
Have you been in your job more than two years? If yes, you'd get some payoff anyway.
I've never bothered as I'm confident I could get some other work (and I'm self employed now), but if you find it hard to get jobs (don't interview well or whatever) it might appeal.
let the government pay your mortgage for 2 years......they will you know!