Redundancy Protection

07 December 2016
share post tweet
'Redundancy Protection' image

If you would like to talk to a consultant about this product please call 01 8327250
In today's uncertain economic times it is worth considering having a policy that will protect your mortgage payments for one year in the event of involuntary redundancy, accident or illness.
Mortgage repayment protection has become more expensive in recent years following the large level of claims experienced by underwriters.
Whether this type of policy is suitable for you depends on a number of factors including:

  • Affordability
  • Any existing protection cover in place whether with your employer or otherwise
  • Your perception of the risk of redundancy
  • Your requirement for peace of mind in regard to keeping up your mortgage payments in th event of accident illness or redundancy

Information on Mortgage Repayment insurance cover is set out below.
For further details complete our Enquiry Form or call now and we can complete a full application over the phone.
The following information is for guidance only. Full details will be contained in your policy booklet.

Mortgage payment protection insurance explained

Mortgage Payment Protection is an insurance policy that will cover your mortgage repayments if you, as a PAYE employee are unable to work and remain so for 30 days or more due to an accident, sickness or from being made involuntarily redundant.
Should you be self-employed, ,Mortgage Protection Insurance will cover your mortgage repayments if you are unable to work and remain so for 30 days or more due to accident or sickness.

Why do I need it?

Protecting your mortgage payments ensures you avoid running into arrears on your mortgage.
In the event that you are unable to work for a period of 30 days or more due to illness, an accident, or being made involuntarily redundant you are entitled to make a claim subject to the terms and conditions of your policy.

How long can I claim for?

Monthly benefit will be paid after the initial 30 days if you are out of work due to an accident, sickness or you are made redundant (applies to those who are PAYE workers).
Thereafter, you will be entitled to an amount equal to the monthly mortgage benefit( see limits below) for each consecutive 30 day period that you remain out of work due to an accident,sickness or redundancy , until a maximum of 12 monthly payments have been made on your behalf for any one claim or you return to work, whichever happens first.

How much is the monthly benefit?

The benefit is the lower of the following:

  • 100% of your mortgage payment
  • 65% of your net income
  • €1500

How much does it cost?

Mortgage Payment protection insurance costs €6.64 (New Mortgage) and €10.07 (Existing mortgage holders) per month per €100 covered
For example if you are taking out a new mortgage and your monthly repayment is €1,000 the cost of cover will be €64.4 per month.
If you have an existing mortgage and your repayments per month are €1,000 the cost of the insurance cover is €100.7 per month.

Am I eligible?

To be eligible you need to be at least 18 and less than 60 years of age, have been in full-time employment for at least 6 months immediately prior to the policy start date, to be an Irish Citizen, working and residing in the Republic of Ireland and have a residential mortgage agreement in force..

Can I apply if I am unemployed?

No, you must have been in full-time employment for at least six months immediately prior to the policy start date.

Who are the underwriters of this policy?

The policy is arranged by Assurant Solutions and the policy is is underwritten by Alpha Insurance.The policy has been arranged through PIBA who are the leading Irish Broker organisation..

Will you require medical evidence if I claim?

Yes, should you be claiming for an accident or sickness we will require information from your Doctor. Your Doctor may charge you for this information.

Will you need to see my medical records if I claim?

Possibly, our claims assessors will assess each claim and decide what information is required to process a claim.we employ medical advisors to help assess each claim. If they feel that further information is required, we may need to ask your Doctor to provide more information.

When and who do I need to notify about a claim?

Should you need to make a claim you need to notify Assurant at the earliest opportunity. email or call 0044 1285 626020.

Can I claim more than once?

You may make a further claim for accident or sickness if it is:

  • For an unrelated condition if you have returned to work for 1 month;
  • For the same or related condition if you have returned to work for 6 months following the previous accident or sickness claim

You may make a further claim for compulsory redundancy as long as you have returned to full-time employment for 6 consecutive months after your initial claim.

What events are not covered?

As with all insurances, there are going to be times when Insurance is unable to cover you. A summary of the main exclusions follows:
Accident or Sickness benefit will not be paid if your accident or sickness results from:

  • Any preexisting condition
  • Attempted suicide or self inflicted injury:
  • Any chronic condition
  • Being under the influence of, or being affected by, alcohol or drugs unless prescribed by a doctor;
  • Any condition of a mental or nervous origin including stress, anxiety or depression, unless the condition is certified by and under the continuing care of a consultant psychiatrist specialist;
  • Backache or a related condition without supporting medical evidence;
  • For any period your accident or illness is not confirmed by a doctor
  • For any period when you are in receipt of normal salary

Redundancy Unemployment benefits will not be paid if:

  • You were aware at the policy start date that you would be made redundant or you had reason to believe this would occur or if this occurs within the first 150 days (new borrowers) or 180 days (existing borrowers) of the policy start date;
  • You were not in full-time employment for at least 6 months immediately before your first claim for unemployment;
  • You resigned or accepted voluntary redundancy or unemployment;
  • Your work was seasonal, casual or temporary, or unemployment is a regular feature of your work;
  • It results from any act of misconduct, fraud or dishonesty.

Please note that the above is only a guide and full details of the policy terms are in the policy documentation.