Redundancy/Income protection - 120 days initial

I would expect an insurer to be very wary of someone who takes out a policy when the employer has made a statement like this. Otherwise nobody would take out any policies until they felt they needed to make a claim. You could start the policy but expect the insurer to make enquiries before paying any claim you might make.

Rob Graham

The basis of any insurance contract is that you must declare to the insurance company in good faith all material facts, whether you consider them to be relevant or not. Otherwise, they can refuse to pay out even if they have accepted your proposal and taken your money.

So, all you can do if you want to be covered is tell the insurance company all you know and see if they are willing to insure you. If they are, they cannot then refuse to pay out on the basis that you didn't tell them what you did.

Yeh. I guess thats why they put in place the 90/120 day intial period.

But at what point do you officially know about your redundancy? It seems a bit of a grey area...

I`d be very surprised if a company would insure you if they where mde aware of the material facts. And if you don`t make them aware of material facts (like you have a good idea you`re about to be made redundant) then if they ever find out the true story, they`ll be coming after you for the money, and potentially going for some form of fraud charge to boot.

One thing to watch: does your employer actually make people redundant by offering them a "compromise agreement"? That means they resign in exchange for a payout. This can cause problems with such policies. Robert

LOL. Got stitched up by a previous employer with a 'Compromise Agreement'. They used it as a way to shortcut the redundancy process.

A few of us were called into a room one by one and told that customers had made complaints about us. Unless we agreed to resign and accept the compromise agreement, we would be suspended immediately and the process of dismissal would begin. Of course, the stuff they came up with was quite quite pathetic and would have been funny if it wasnt so serious.

Of course, in the end, because the financial offer was decent, I had no choice but to take the cash and get a new job. I'm glad to say (apart from the friends left behind who lost their jobs also) that this bunch of cowboys folded a year or so later anyway.