Mortgage Protection payout

E

enorc

Guest
I will be made redundant in a couple of months and will come out with a reasonable amount of money after 8 years service.I would like to use this to go travelling and not get a job for a number of months. I have a mortgage with AIB for about 8 months now and wonder if I will get anything towards the mortgage payments or will I have to spend my redundancy money on it. How do I go about making a claim and will they take into account the redundancy money before they pay out???
 
I have a mortgage with AIB for about 8 months now and wonder if I will get anything towards the mortgage payments

Do you have mortgage repayment protection (not to be confused with mortgage protection life assurance)? If so you should check the terms & conditions to see if it will pay out in your current circumstances and for how long. See for more information on the different types of mortgage related insurances.
 
In the cases I am aware of, payout under a payment protection policy is not affected by receipt of a lump sum payment for redundancy. Ongoing payment is contingent on providing ongoing evidence of your availability for work and evidence of an active job search campaign.
 
As far as I know the payout periods (individual or cumulative) are also generally restricted - e.g. I've heard of policies that have a 12 month total payout period. Best to check the terms & conditions of your specific policy.
 
One other point , you have to be actively looking for a job, you cannot just travel the world for a year as you have to submit social welfare information or something similar. 2 guys where I worked had planned to do this but couldn't as they had to show they were definitely unemployed. Obviously this may vary from policy to policy.
 
Re:mortgage Protection Payout

Thanks for the info. Thought as much. may have to restrict the travelling if I expect a payout, or esle jst pay it myself while away. Or rent, loads of options still. Thanks.
 
Re: Re:mortgage Protection Payout

Don't forget to apprise yourself of the implications of renting the property (e.g. clawback of stamp duty if rented within five years of purchase as an owner occupier, CGT on a portion of the eventual resale gain, the need for alternative insurance cover etc.). This stuff has been covered in depth many times here on AAM so you should be able to find some useful information.
 
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