Absolutely right to be cautious and one must always fully read the terms and conditions. However, I have been in the situation where I have actually claimed from this particular insurance - albeit for sickness not redundancy. I did find that the claim process was relatively straightforward but I did have to debate with them over a pre-existing condition. However, they did pay - and on time. They didn't ask about other insurances I had and left me alone once I was claiming until I was ready to return to work.
With any insurance you have to accept that you may have to assert yourself - occasionally aggressively - to get your payout. However, insurance companies are bound over by quite strict rules and regulations and if your case is genuine then you have nothing to fear as they have no choice but to pay out.
The question is would you rather not be insured just in case they make life hard if you have to claim?