Hi all I have a question re Mortgage protection, I am contemplating taking voluntary redundancy from my current job & would like to take some time out to do some courses not sure of the timeframe as of yet but is there a policy that pays out for this type of redundancy? My status is single & have no dependants! Thanks in advance for any information.
Mortgage protection
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irishlinks
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I doubt if there would be a policy that pays out on voluntary redundancy - just imagine if there was - everyone would be packing in their jobs.
Dave Vanian
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Mortgage Repayment Protection will pay out for redundancy, but not for voluntary redundancy as irishlinks explained. Mortgage Protection (a form of life assurance policy) usually pays out only on death. You should be clear as to which type of policy you have, although it's academic in this instance as you won't get a claim on either type for voluntary redundancy.
If it's a course to die for, maybe you can claim on life assurance.
If it's a course to die for, maybe you can claim on life assurance.
Previous poster is correct. We work in this area. The so-named "mortage-protection" policy is issued by a life insurance company and pays out on the death of the borrower with the term of the policy (co-inciding with mortgage term). Such cover can also be bought to pay out in the event of critical illness.
The confusingly titled "Mortage-repayment-protection policy" pays out genearlly on loss of job or serious disbabilty.
As a principle, insurance companies, either general or life insurance do not pay out on events that are under the control of the insured person, or which they can reasonably be expected to forsee and avoid.
As such voluntary redundancy is excluded, and we have seen specific case histories on this point.
This brings us to two key points. A redundancy happening shortly after the policy starts will be veiwed supiciously by the calims dept. in an insurance company, and will be chceked diligently before pay-out.
Is redundancy voluntary or forced ? In most cases there will be public knowledge of voluntary redunancy programs in particular businesses.
In a smaller organisation, the point could be debatable, but employers open themselves up to a potential minefield of litigation against themselves, from State agencies, insurance companies, and the redundant person themselves, if they were to wrongly certify the nature of the redundancy on a claim form.
No joy for you here, but I hope the extra detail assists your understanding on the topic.
The confusingly titled "Mortage-repayment-protection policy" pays out genearlly on loss of job or serious disbabilty.
As a principle, insurance companies, either general or life insurance do not pay out on events that are under the control of the insured person, or which they can reasonably be expected to forsee and avoid.
As such voluntary redundancy is excluded, and we have seen specific case histories on this point.
This brings us to two key points. A redundancy happening shortly after the policy starts will be veiwed supiciously by the calims dept. in an insurance company, and will be chceked diligently before pay-out.
Is redundancy voluntary or forced ? In most cases there will be public knowledge of voluntary redunancy programs in particular businesses.
In a smaller organisation, the point could be debatable, but employers open themselves up to a potential minefield of litigation against themselves, from State agencies, insurance companies, and the redundant person themselves, if they were to wrongly certify the nature of the redundancy on a claim form.
No joy for you here, but I hope the extra detail assists your understanding on the topic.
One extra point for anyone else reading this - a mortgage protection policy, will pay out the full outstanding balance at that time on your mortgage (once it has`been paid up to date) BUT a mortgage repayment protection policy will pay only your monthly repayments for a limited period, usually twelve months. Anybody comtemplating this kind of cover should obtain a copy of the policy details and conditions and read it before signing up, or ask an independant adviser to run through the conditions with you.