Does anyone know anything about income protection and redundancy?

[iwouldgoouttonight]

We've been told at work that 20% of jobs are going to be made redundant in the new year but nobody has been told specifically that their particular job is under threat. We don't have any income protection so if I was to lose my job I don't have any way of covering my half of the mortgage and bills (and DP can't afford to pay all of it). Also I'll be on maternity leave as DC2 is due in Jan.

So I thought I should quickly take out some incompe protection to cover at least my half of the mortgage but I'm unsure about whether they'll actually let me claim if I were to lost my job as we do know there are going to be job losses. I've just been looking at some policies and they tend to say things like this:

"You will not be covered if you are made aware by any means, before the start date or within the initial exclusion period, of anything that might lead to your unemployment, not withstanding that no specific reference has been made to your personal situation and that your unemployment may not take place until after the initial exclusion period."

Do you think that means because I know that some jobs will go, even though I don't know if it will be mine, that I won't be covered? We haven't had anything from work in writing yet, apart from emails and what we've been told at meetings.

Is there anywhere I can ask to find out whether I'd be covered - not keen to phone the insurance company because then I'd obviously have to say why I was taking out the insurance and I'd imagine they'd see me as a high risk! I don't want to lie about it, but I don't want to miss out if there was a way I could get cover.

Anyone know anything about this???! [hopeful]

I think if your company have said that there will be job-cuts, then the insurers would not cover you - they would probably contact the company to find out what had been mentioned when, and if it was said in emails or at a meeting then the insurers can prove that you knew about it when you took out the insurance. Sorry, but I think you'd be throwing away the premium.

It seems very clear that you would not be covered in this scenario. Also, is there not a minimum qualifying period during which you have to have been insured before you can claim? Best thing is probably to contact a broker who will be able to advise without any insurance company becoming aware of your details.

If you've had meetings and emails letting you know about a redundancy programme that will involve 20% of jobs going, then no one will cover you I wouldn't have thought, certainly based on what you've put as an example of terms and conditions of a policy.

I wouldn't bother, they wont pay out as you knew of a risk before hand. They always find these things out.

There is usually a 6 month period at the start where you can't claim anyway.

Thanks - I was thinking that would probably be the case. Was just hoping that because I've not been told that my job specifically will be at risk then I might be able to get some kind of cover.

I'm just worried because I'll find out whether I am being made redundant the week my baby is due so I'm going to have to somehow spend my maternity leave job hunting as well as looking after a newborn and a toddler! I was only going to take four months maternity leave as I can't afford to take much longer so ideally would need to find a new job asap to meet our mortgage and bill payments.

Minimum qualifying period is usually 1-3 months, not 6 months.

Mine is 4 weeks for example.

I didn't think you could be made redundant whilst on maternity leave? I could be wrong though.

Why don't you get three quotes on line, use momeymarket or similar. Out of the three, take the one you would NOT use and call them to ask advice. Make sure you check first that the companies aren't linked though.

Sorry, but you've left it too late for income protection for redundancy. If you are made redundant within 6 months of taking the policy they ususally don't pay.

NSFOG - the 1 - 3 month qualifying is the delay until they pay out. Eg mine kicks in 30 days after I'm made redundant; and if you get payment in lieu of notice they take that into account.

They always check before accepting a claim so you would be found out. Wouldn't make a difference if the "excess" period was 1 month or 6 months.

You can be made redundant whilst on maternity, the only extra protection you get is that if there is a vacancy for a suitable job you should get first refusual.

The other thing to remember is, they will have the right to forceably cancel any policy where they suspect fraud and it will affect every insurance policy in future, home, car etc.

CHOOGIRL - nope, mine pays out after 30 days as long as i am signed on and pay in lieu of notice is not counted.
It varies from policy to policy, i went for a cast iron This Will Save My House policy!

If you are on maternity leave you are likely to be OK i they are cutting 20% across the board rather than targetting your area specifically; the provision that you get priority for any appropriate vacancies is likely to be enough if your employer is reasonably-sized (wouldn't work so well or a small employer). I think it could be worth discussing that with HR now.

Also, while it's too late for you, might it be worth investing in income protection for your DP (if he's not in an ultra-secure job)? That way you aren't at risk of losing two incomes.

Newspirits can I be cheeky and ask you which policy you opted for? I am looking around for one like that!

I went on moneysupermarket.com and compared everything, this was about 10 months ago though.
My colleague took out a similar policy with Britannia ( i think) this month, his salary is similar to mine but he pays about £15 a month more than me, i think prices have risen just because obviously the demand is alot higher now.

There are good deals out there, you really have to do loads of shopping around though.
My colleague got his quote from the website but called the company once he'd got his quote to see if they could muck about with different features.

I agree with Port you are likely to be ok for the reasons she mentions, just make sure they are aware you're pregnant so that they can factor in that you will be on maternity leave at the time.

NSFOG - the key is insurance will pay out if signed on for JSA. For JSA PILON is taken into account.