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  • FIRST POST
    • jem999999
    • By jem999999 14th Mar 17, 4:51 PM
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    jem999999
    Extend PHI due to new retirement age
    • #1
    • 14th Mar 17, 4:51 PM
    Extend PHI due to new retirement age 14th Mar 17 at 4:51 PM
    I have held PHI (Permanenet Health Insurance) for 18 years, since I first became self-employed. The contract ends at age sixty, the retirement age for women as it stood at that time. Due to government changes, my new retirement age is now 68. I was diagnosed with MS 10 years ago although I have only had 3 or 4 small claims (maximum 4 weeks off work) since policy inception in August 1999. My insurers will not extend my cover to 68 because of this, although they would be happy to extend it to 68 if I had not made the claims! Is there anything I can do to extend my cover or do I just have to accept that despite trying to protect myself in the event of accident or illness I have been hobbled by the government and the insurance industry?
Page 1
    • Weighty1
    • By Weighty1 15th Mar 17, 12:40 PM
    • 174 Posts
    • 61 Thanks
    Weighty1
    • #2
    • 15th Mar 17, 12:40 PM
    • #2
    • 15th Mar 17, 12:40 PM
    I don't see how you can say you have been hobbled by the insurance industry. Like you say, they have paid out on the small claims you have made. From their perspective they need to try and mitigate risk and if they extended the retirement age on the plan they would be opening themselves up to an extra 8-years worth of claims.

    Due to the MS you are unlikely to obtain alternative PHI (obviously, feel free to check this out yourself) so I think you may be stuck with the cover you have. The alternative is trying to save as much as possible over the coming years to try and build up an emergency fund which could help you once you reach age 60+
    • dunstonh
    • By dunstonh 15th Mar 17, 1:53 PM
    • 88,375 Posts
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    dunstonh
    • #3
    • 15th Mar 17, 1:53 PM
    • #3
    • 15th Mar 17, 1:53 PM
    Due to government changes, my new retirement age is now 68.
    Your dates do not add up. Your state pension age was 65 when you took the plan out. Not 60. So, the change in years is only 3 years from 65 to 68.

    In 1990 the European Court of Justics ruled that UK pensions should be equal for men and women. This was encacted in 1995. You say you bought in 1999. So, many years after the state pension age had changed to 65.

    At the point the Labour got into power in 1997, there was already reports of the state pension age needing to go up and by 2002, the TUrner report was commissioned and that recommended increases in 2004 to bring it to 68.

    So, this was in the early part of you having the plan. Still time for you to adjust the terms.

    My insurers will not extend my cover to 68 because of this, although they would be happy to extend it to 68 if I had not made the claims!
    Not sure why you add the exclamation work. That is how insurance generally works. i.e. covering unforeseen events.

    I have been hobbled by the government and the insurance industry?
    You have not been hobbled by either. You made an initial mistake in your state pension age. However, state pension age is not the same as retirement age (the UK average retirement age is a around 63). Not a large a gap as you suggest.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • kingstreet
    • By kingstreet 15th Mar 17, 2:11 PM
    • 31,620 Posts
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    kingstreet
    • #4
    • 15th Mar 17, 2:11 PM
    • #4
    • 15th Mar 17, 2:11 PM
    Think of how much more expensive your PHI would be due to your condition and the extra years you would have paid.

    Now take that money and invest it in pensions and savings to ensure the impact of not being able to increase the term of your cover is minimised.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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