Assurant premium hike.

Shambler

Hi, I am insured for unemployment/accident/sickness by Assurant.

I was happy paying a premium of £35 a month for £1200 monthly payout.
They just hiked the premium up to £53.28! :eek:

Anyone know of a similar company but with lower premiums?

Think I'll have to opt out of this insurance otherwise.

dunstonh

Payment protection doesnt have premium guarantees. You only get that with permanent health insurance on guaranteed premiums. You ought to look at PHI as an alternative as its far superior to payment protection. Although it doesnt have unemployment cover you can get standalone unemployment cover to run along side it.

Personally, I think payment protection is a waste of money and really only a fall back for those that cannot get PHI.

chartreuse_2

I received a similar letter from Assurant today. It talked about how important insurance is "at a time of economic uncertainty" and said that, due to inflation they'd have to increase my premiums to £30.

If MSE has taught me one thing it's to ask "Hang on. How much was I paying?" A quick check - my current premiums are £15.

So I called them (on a geographic number, not the 0844 one they gave) and said that I wasn't up for my premiums doubling. The chap kept asking if I wanted to reduce my cover or amend my policy, I kept saying "No, I'm happy with my policy and cover, I just don't want you to double my premiums."

I'm waiting for a call back from a supervisor. In the interim, a 5 minute search has found another insurer who will give me the same level of cover for the same (£15) price. The site says that the 90 day exclusion period is "waived if you are transferring to this cover from an existing unemployment cover which was in place with Paymentshield or another Mortgage Payment Protection Insurance Policy and you are transferring your cover to this Paymentshield policy."

So, does taking out a new policy and closing the old one count as transferring? Or do I have to do something special?

chartreuse_2

dunstonh wrote: »

Personally, I think payment protection is a waste of money and really only a fall back for those that cannot get PHI.

That's nice

As it happens, my job comes with sick pay (at full salary) for life (well, until retirement age, at which point the final salary pension kicks in), so PHI wouldn't really be much use to me. On the other hand, covering my mortgage payments against unemployment seems like a good idea.

dunstonh

As it happens, my job comes with sick pay (at full salary) for life (well, until retirement age, at which point the final salary pension kicks in), so PHI wouldn't really be much use to me.

So why you are paying for payment protection as the same rules apply to payment protection as PHI?

You are throwing money away on a Payment protection when really its only the unemployment bit you need so a standalone "U" policy is all that is needed.

If you got this policy under advice you could put a mis-sale complaint in. If you bought it yourself direct then you cannot.

chartreuse_2

dunstonh wrote: »

You are throwing money away on a Payment protection when really its only the unemployment bit you need so a standalone "U" policy is all that is needed.

Unemployment cover is all I'm buying. Are we at cross purposes here?

dunstonh

Unemployment cover is all I'm buying. Are we at cross purposes here?

Yes we are. I hadnt spotted that you were not the OP who does say they have accident, sickness and unemployment.

chartreuse_2

dunstonh wrote: »

Yes we are. I hadnt spotted that you were not the OP who does say they have accident, sickness and unemployment.

Phew! I was getting a little confused there for a moment - no worries, it's easily done

Do you happen to know the answer to my question about transferring? It might be of interest to others if, as seems possible, Assurant are hiking their premiums.

dunstonh

If you start a new plan then most providers will treat it as a new application and start the qualifying period again from scratch (typically anything upto 180 days).

lisyloo

If the hike in premium represents a perception of greater risk (lots of people are going to lose their jobs in the forthcoming recession) then you may well find that premiums across the board have risen.

I'm only speculating here but it seems logical in the current climate.

chartreuse_2

lisyloo wrote: »

If the hike in premium represents a perception of greater risk (lots of people are going to lose their jobs in the forthcoming recession) then you may well find that premiums across the board have risen.

I'm only speculating here but it seems logical in the current climate.

It's possible, I suppose, but a 100% increase? Blamed on inflation? I think it's far more likely that this is just another typical insurance company "let's hike the premiums and benefit from customer inertia" ploy. Especially as there are loads of other providers offering the same cover for a lot less.

Hence my trying to find out what the insurer I quoted means by "transferring" cover.