Redundancy cover - a case for the defence

Having just read your article ''Public being warned off redundancy insurance'', i felt compelled to write in and express my opinion that what has been written is irresponsible and in most parts incorrect.

In a time when a lot of people are being made redundant (on the same page, there''s even a link to an article ''Unemployment up sharply''), why would you publish an article which would put brokers off selling it.

The article points out that you cannot claim if you take voluntary redundancy, does anybody think it should? and that claimants must actively seek work whilst claiming, i don''t think (given the level of benefit involved) that anyone would want to sit at home doing nothing while their 12 months claim ended.

It also states that having to wait between 30 to 60 days is an ''onerous condition''??? if someone is made redundant, they will be paid up until the end of the month at the very least, and the client can choose the deferred period depending on the level of redundancy payout they would receive, how is that an onerous condition?

Also, the 120 days exclusion period doesn''t apply in most cases when the policy is taken out alongside a new mortgage application, this exclusion exists purely to stop people taking out cover when they hear a rumour of redundancies at their workplace.

The statement that unemployment cover is expensive compared to income protection, is simply untrue and saying that people should put 3 months income to one side is all well and good but that is an advisable measure in case of emergencies anyway, but unemployment cover can potentially pay out for 12 months.

I can just see it now, when a client gets repossessed 6 months after being made redundant and comes after me (with the FSA behind him) for only recommending he has 3 months income aside in case of redundancy because i read an article that put me off selling the protection that could''ve stopped him being repossessed. So, all in all, I wasn't overly impressed with that article.

Andrew Hall

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