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mortgage payment protection insurance
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Years ago I took out MPPI - last week I was told by management, the factory in which i work is ceasing production in mid october.
They have offered a voluntary redundancy package worth 32k of which people will start to be redundant next month.
Why vountary redundancy instead of compulsory ?
I have been told I am being kept on until well after the factory has ceased operating and am being kept on until it is decomissioned.
My MPPI policy states it will not cover me in voluntary redundancy but surely this is compulsory redundancy as my position in the factory will cease to exist by the end of the year.
They have offered a voluntary redundancy package worth 32k of which people will start to be redundant next month.
Why vountary redundancy instead of compulsory ?
I have been told I am being kept on until well after the factory has ceased operating and am being kept on until it is decomissioned.
My MPPI policy states it will not cover me in voluntary redundancy but surely this is compulsory redundancy as my position in the factory will cease to exist by the end of the year.
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If you are kept on until the factory closes and then laid off that is compulsory redundancy - you have no choice in the matter. Probably the voluntary redundancies are being requested now to make the initial stages more pleasant but eventually the remnant of the workforce will face compulsory redundancy.
Just to add to my post above � you will no doubt have worked out what a nice little earner for the insurance industry, these Payment Protection policies are.
For many people working for multinational companies � unless the whole operation goes bully up, there will almost certainly be an enhanced voluntary redundancy on offer, when they reduce the workforce. The company I work for publishes its voluntary redundancy scheme � even though nothing is in the offing � I know exactly how much I would get in the event of me being made voluntarily redundant.
To make a rough calculation of how good these policies are; divide your monthly mortgage payment by your monthly PPI, and that is the number of policy holders (not claiming) required to support each claimant (not allowing for any profit/operational costs to the insurer). You can then make a judgment call as to whether you think the policy is worth having.
As an example, imagine you are paying a monthly mortgage of �1,000 and your PPI is �50/month, 1 in 20 or 5% would be needing to be claimants (for the scheme to break even) � even in these tough times, I doubt the claimant rate would be 1 in 50 � given as you have found out, the exclusions applicable to the policies.
For many people working for multinational companies � unless the whole operation goes bully up, there will almost certainly be an enhanced voluntary redundancy on offer, when they reduce the workforce. The company I work for publishes its voluntary redundancy scheme � even though nothing is in the offing � I know exactly how much I would get in the event of me being made voluntarily redundant.
To make a rough calculation of how good these policies are; divide your monthly mortgage payment by your monthly PPI, and that is the number of policy holders (not claiming) required to support each claimant (not allowing for any profit/operational costs to the insurer). You can then make a judgment call as to whether you think the policy is worth having.
As an example, imagine you are paying a monthly mortgage of �1,000 and your PPI is �50/month, 1 in 20 or 5% would be needing to be claimants (for the scheme to break even) � even in these tough times, I doubt the claimant rate would be 1 in 50 � given as you have found out, the exclusions applicable to the policies.
Check out this site to gain more knowledge about the mortgage payment insurances.
http://insurance-plan-guide.blogspot.com
http://insurance-plan-guide.blogspot.com
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