There is no excuse for either of the above, the competition commission has told you that you should not buy at the point of sale and the internet allows us to compare products with ease.

Redundancy Insurance is a contract and as such there will be terms and conditions attached.

Here are a few of the more important one to watch out for:

Eligibility: Do your employment circumstances fit the eligibility criteria?

Care should be taken here, generally you need to have been in employment for six months continuously, working more than 16 hours per week, actually working i.e. not drawing sick pay, aged between 18 and 65, be resident and working in the UK, Channel Island or the Isle of Man. Seasonal, temporary or contract workers are generally excluded.

Failure of any probationary periods is not covered.

Initial Exclusion period: Important to watch out for this one – most Redundancy Insurance have this as a built in condition to avoid being selected against i.e. policies being taken our when there could have been some knowledge of impeding redundancy. Normally, these exclusion periods are around 90 days.

Deferred Period: Following acceptance of a valid claim, benefits are payable monthly after a 1, 2 or 3 months period. A policy that pays out after three months has elapsed is less expensive and can be useful if a rainy day fund is available or some degree of redundancy money has been paid out. There is “back to day one” cover is available with some Redundancy Insurance; this will pay benefits back to day one, at the end of a 30 day deferred period.

Generally the maximum period that a Redundancy Insurance will pay a claim for is 12 months. If you have received payment in lie of notice, payment will not be made for this period.  During the claim, you must be available and actively seeking work.

The message is clear, when searching for a Redundancy Insurance, be clear about what you are looking for, and read the terms and conditions carefully.

©2009 Income Payment Protection Insurance. All Rights Reserved.

Even when times are good, companies cease trading. Now, even a British institution like Woolworths, is now set to close in the new year, with the loss of, potentially 27,000 jobs.

No one is safe.

The Government has launched its, well politicised, “rescue”, plan to assist those of have lost their jobs, keep their homes; in theory. Details are sketchy, however it would seem that it is simply a scheme that will allow (very few, based on published criteria) borrowers to “ roll” up their mortgage interest for two years, after which time, if their positions have improved, a new repayment schedule, may be able to be agreed, if affordable.

Great, more unaffordable debt, putting off the inevitable.

Being cynical here, but could this just be a political delaying tactic, putting off a crisis until after the next general election? Surely not!
The message is as clear as it ever was; your financial future is in your hands.

Even with the odds stacked against you in terms of being made Redundant, it is still possible to buy Mortgage Payment Protection.

If you lose your job, involuntarily, a Mortgage Payment Protection policy will start to pay a monthly benefit to cover your mortgage, and other related expenses for up to 12 months or your earlier return to work; whichever is sooner. 

If bought right, Mortgage Payment Protection is about the best it’s ever been in terms of paying a claim, due to the work of various “consumer champions” and the Competition Commission.

The message is clear here; do not buy Mortgage Payment Insurance at the point of sale, the Competition Commission has recommended that this practice be banned.

Your ally here is the internet, which has created a competitive market that has driven prices down. If you don’t yet have a mortgage payment protection plan and would like to start sleeping soundly again, best get surfing!

©2009 Income Payment Protection Insurance. All Rights Reserved.

However, before you go running out to purchase a Redundancy Insurance, there are a few things that you should know:

• Redundancy insurance pays out in cases of compulsory redundancy only, if you choose voluntary redundancy, the policy will not pay out.
• Most policies exclude seasonal workers.
• A typical Redundancy Insurance will state that employees must have been employed continuously for six months prior to claim and be a permanent member of staff.
• Redundancy Insurance has an initial exclusion period, the avoid the insurance company being selected against by those that had some knowledge of an impending redundancy, typically 120 days
• In the event of a valid claim, payment start dates vary between 30 to 60 days, however there are Redundancy Insurances that offer “back to day one cover”, which may suit some people. These policies may be a few pence more expensive per month, but could be worth the extra cost for some.
• If you claim on the policy, you must demonstrate that you are actively seeking work. The insurers would expect you to enter into a Job seekers agreement at the job centre, which involves a fortnightly sign on and some state benefits. These benefits are not reduced in any way by the Redundancy Insurance claim payments.

If you already own a Redundancy Insurance that you purchased through a lender, think that you are paying too much per month and would like to switch, make sure that the scheme that insurer that you choose will waive the initial exclusion period, thus offering continuous protection.

©2009 Income Payment Protection Insurance. All Rights Reserved.

A pre-agreed amount can be covered, usually up to 50% of your gross earnings, with benefits on claim being paid directly into your bank account; tax free under current HMRC rules.

Cover can be arranged for loans, mortgages, or simply your income. In the event of a valid claim, benefits are normally payable for a 12 month period, during which time; you must simply be registered for Jobseekers Allowance (contribution or income based).

Redundancy Insurers will all include a set deferred or initial exclusion period which you must wait before claiming on the protection; however if you have cover with another insurer and want to switch, some Redundancy Insurers will waive the initial deferment period before a claim is allowed. This “switching” feature is particularly important to those who have been sold expensive and difficult to claim on Redundancy Insurance Policies sold by the Banks.

If you have purchased a Redundancy Insurance through a lender, review the cost/benefit to make sure that you are not paying too much, for a policy that you cannot claim on.

As with all Redundancy Insurance Policies, read the Key Facts and policy conditions carefully to make sure that the Redundancy Insurance cover is suitable for your employment situation.

And finally; use the internet to save money.

©2009 Income Payment Protection Insurance. All Rights Reserved.

An excerpt from this redundancy insurance article:

“The message is, if this is a product you need, buy it quickly”

Whilst insurance companies have removed themselves from the market or limited their exposure to certain aspects of cover, there is no short supply of redundancy insurance policies. What we are seeing is the ‘redundancy insurance’ only option being removed from many policies so that you have to buy the accident and sickness aspects of cover as well. Whilst you still have the redundancy insurance cover the insurance company gains a bit more premium from you just in case you claim.

The valid part of the argument is that there will be a steep rise in redundancy insurance claims very soon, with unemployment rising month on month. The worry about being made redundant and the uncertainty of some companies finances had led thousands of people to seek out and buy redundancy insurance for that extra peace of mind.

©2009 Income Payment Protection Insurance. All Rights Reserved.

Well folks the party is well and truly over, and lean times are here well into the next decade. If ever there was a sign that we are in the doo doo, it’s a chancellor cutting VAT by 2.5% before Christmas in order to stimulate consumer spending……at the busiest time of the year! That’s how bad it is out there; and the chances are, that people won’t return to the spending patterns of yesteryear; will you?

This of course means that jobs will go, that is certain. BT has recently announced 10,000 job cuts, and they are one of the stronger companies.

A news item on the BBC came up with a worrying statistic that one in twelve of us will lose our job. Well, unlike most statistics, this is very believable.  If like many of us, you don’t got a huge pot of rainy day money stashed, but were sensible enough to think about taking out Redundancy Insurance, but thought that you would wait until the last moment to buy…well that moment has come.

A redundancy insurance policy is designed pay a monthly benefit, usually up to 65% of your pre redundancy earnings; should you be made unemployed through no fault of your own. The policy will not put you in a better income position than you were in prior to losing your job, or there would be no incentive to return to work. If you want to cover your self fully, accident and sickness benefits can usually be added to the policy for a little more on the monthly premium.

In the event of a claim under these policies the monthly benefit will be paid directly to you, so you can deal with priory commitments, as you feel fit.

Generally, Redundancy Insurance Policies normally payable for up to 12 months if needed, the benefit is tax free under current HMRC rules.

A Redundancy Insurance Policy does exactly what it says in the literature, so read the Key facts document and policy conditions carefully.

If you have elected to include the Accident and Sickness in the policy, make sure that you disclose all pre existing medical conditions.

These days, as long as you avoid buying Redundancy Insurance through a Bank, you’ll be surprised at the daily cost; it can be as low as pennies per day.

©2009 Income Payment Protection Insurance. All Rights Reserved.

Lenders have to follow a fairly strict code of conduct when it comes to taking possession of a property under the MCOB (mortgage conduct of business rules) and they have to demonstrate that they Treat their Customers Fairly “TCF”. This is all very good; however its just more lip service to paper.

In effect, if you do not make your monthly mortgage repayment, the lender simply has to show that they have written to you a few times, told you the consequence of not paying and given you a chance to pay or demonstrate that you have the means settle any arrears within a reasonable timeframe.

Lenders are not charities, and if the courts were that sympathetic to non payers, allowing ridiculous underpayments or extensions to the term of the loan; the lenders would simply not lend.

There are three main causes of repossessions:

Relationship breakdown
Inability to work due to accident and sickness
Redundancy

Well, relationship breakdowns have not increased significantly enough to cause a 79% increase in repossessions; that would simply be ridiculous.

Has the incidence of morbidity increased that much? No, although a serious cause of repossession, figures remain largely static.

The answer is obvious, the downturn in the economy. So what can you do to protect yourself?

The answer is simple, for less the cost of the average monthly satellite TV subscription, you can purchase an MPPI policy (Mortgage Payment Protection insurance Policy).

Mortgage Payment Protection Policies, will meet the monthly cost of your mortgage (some will give you money on top, to cover insurance policies etc), for up to 12 months, should you be unable to work through Accident, Sickness or Redundancy.

©2009 Income Payment Protection Insurance. All Rights Reserved.

Views of the experts differ, however the generally accepted wisdom is that this one could be long and deep, with thousands of companies going to the wall, as well as hundreds of thousands of redundancies.

Even in the good times, when the economy was booming, redundancies still happen, with regularity, however certain sectors, like banking, were somewhat immune; well, not now.

Losing your job is bad, losing your home is worse. The upheaval, the stigma and of course the stain of your credit file for at least six years. It doesn’t paint a pretty picture.

Well there is some thing that you can do, and unless you have a bucket load of cash behind you, this maybe the only way to save your home if you lose your income. Oh, and if you thought the state will help you, think again. Income support for mortgages will only pay the interest on your loan, after the first nine months. By then, you will be long gone, by the time the envelope drops on the mat!

MPPI is the financial umbrella that you need.

Should you have the misfortune to be made unemployed through no fault of your own mortgage unemployment insurance (MPPI) will start to pay a monthly benefit to cover your mortgage and a contribution to other costs associated with running a house. What’s more, under the current HMRC rules, the benefit is tax free.

By having one of these mortgage insurance policies in payment, you will be able to service your mortgage, avoid arrears; keep your credit file straight and other lines of credit open.

Now with the financial worries taken care of, you would be able to concentrate on finding another job or maybe work on a business plan for self employment.

These MPPI policies give you a decent breathing space, which should allow you to find a job or set up a business; typically you will receive benefits for 12 months, or when you find new employment, or start trading (whichever is the sooner). Often, there is a clause that states that they will not pay out during the first 90 days of cover. This is to make sure that they are not being selected against i.e. you knew that you were going to be made redundant.

The cover is surprisingly affordable, even in today’s deteriorating job market. However, a word of caution, the Banks offer this kind of cover at a grossly inflated prices, don’t do it. The banks helped get us into this mess, don’t help them out of it!!

When choosing your mortgage payment protection insurance, as with any payment insurance policy, read the key facts very carefully, especially for any exclusion’s.

©2009 Income Payment Protection Insurance. All Rights Reserved.

Recession means job losses, which translates into repossessions. It is a fact of life.

However, the good news is that should you lose your job, you can avoid throwing yourself at the mercy of the state.

Mortgage Payment Protection Insurance or MPPI as it is known to the industry is still available. It is designed to insure against the financial consequences of a mortgage payer losing his or her income, through no fault of their own.

When looking for a policy, do check to make sure that you are eligible and of course, if you are aware for whatever reason that redundancy is on the cards, the policy will not pay out.

Your bank, and of course your existing lender want to offer these policies to you at an inflated cost, and quite often with inferior benefits to those that are available elsewhere. Well, they have got to put some money back in their coffers somehow…make sure that it is not your money!

A good MPPI policy should allow you the time to find a job or set up a business, knowing that your home at least is safe. Typically you will receive benefits for 12 months until you find new employment, or start trading, (whichever is the sooner). Often, there is a clause that states that they will not pay out during the first 90 days of cover. This is to make sure that the insurer is not being selected against i.e. you knew that you were going to be made redundant.

Some providers will offer the additional benefit of “back to day one cover” i.e. they will back date your claim to the first day of unemployment or incapacity. This should stop you losing out financially.

If you are finding things tough financially at the moment, chances are that you have not had the resources to have put aside an emergency fund to cover a period of redundancy.

Well Mortgage Payment Protection Insurance, is probably right for you; but remember, if you really can’t afford the premium to cover all of your monthly mortgage costs, something is better than nothing at all. You can easily elect to cover part of the monthly cost.

MPPI, can you afford to be without it?

©2009 Income Payment Protection Insurance. All Rights Reserved.

Loan insurance is designed to protect your regular loan or credit payments in the event of accident, sickness or unemployment. If you have credit commitments it makes sense to protect these outgoings should something go wrong.

Should the worst happen, at least you have the loan insurance policy in place to make the regular monthly payments. Loan insurance is expensive if you buy it from your loan company or lender. They make large amounts of commission when they sell these loan policies and they know borrowers are unlikely to look elsewhere.

Take the time to search for an independent loan insurance policy, you will find vast differences in the cost. Loan payment insurance providers have to compete for your business so their policies have to provide value for money.

You can find details of loan insurance here: http://www.loanpaymentinsurance.co.uk/

©2009 Income Payment Protection Insurance. All Rights Reserved.