Income Protection (Unemployment)

dkb

*This is not Payment protection on a loan, its a stand alone policy*

I've recently applied for one of these policies to cover me in case of redundancy but the terms and conditions are a bit confusing. Wondered if anyone on here could assist while i'm waiting for their response.

I have a full time job and it is this that I am protecting as it is the main income for paying my bills. However, I am also registered with the HMRC as self employed because I sometimes do some extra work as a supplement to my income. As a result I pay Class 2 national insurance and Schedule D income tax. However, this is very infrequent and works out at about £2000 per annum. Certainly not enough to live on.

In their terms and conditions it says that to claim on this policy I have to be entirely without work and if self employed totally ceased trading and wound the company up. However, should I be made redundant in my main job I would still be registered as self employed, paying class 2 NI and schedule D (if given any work) and would not have totally ceased trading.

Therefore, the way it looks is that I’d be taking out a policy that I would not be able to claim on because I would still be earning a small amount every month.

Thanks for any replies.

dunstonh

Therefore, the way it looks is that I’d be taking out a policy that I would not be able to claim on because I would still be earning a small amount every month.

Correct...

dkb

Thanks.

Thats a bit rubbish then. So I have two choices. I cancel the policy or I cease trading as self employed now (and forego £2000 a year) and continue the policy on the off chance I might become redundant from my main job at some point.

Hmmmm......

duffy78

dkb wrote: »

Thanks.

Thats a bit rubbish then. So I have two choices. I cancel the policy or I cease trading as self employed now (and forego £2000 a year) and continue the policy on the off chance I might become redundant from my main job at some point.

Hmmmm......

im currently looking at imcome protection insurance, im in a similar boat to you, i work as a sub contractor for local engineering companies so am also registered as self employed, well i am classed as a director (and thus an employee) of a company that i also happen to own, not sure if this is still classed as self employed???

anyway, what with the way the construction industry is currently going (down!) i have been looking to get some income insurance, in case my contract gets terminated where im currently working and i cannot find another one.

anyway, reading up on the terms of a few providers this would not result in a succesful claim, as my company would still be trading, to get a succesful claim my company would have to be wound up through no fault of my own, i take this as even if i shut my company down i still wouldnt get a succesful claim as it was me doing the shutting down.

does any one know a company which provides cover for ltd company contractors which would pay out in the event of a termination of contract?

or even if what i have stated above is true? any help would be greatly appreciated.

dkb

duffy78 wrote: »

im currently looking at imcome protection insurance, im in a similar boat to you, i work as a sub contractor for local engineering companies so am also registered as self employed, well i am classed as a director (and thus an employee) of a company that i also happen to own, not sure if this is still classed as self employed???

anyway, what with the way the construction industry is currently going (down!) i have been looking to get some income insurance, in case my contract gets terminated where im currently working and i cannot find another one.

anyway, reading up on the terms of a few providers this would not result in a succesful claim, as my company would still be trading, to get a succesful claim my company would have to be wound up through no fault of my own, i take this as even if i shut my company down i still wouldnt get a succesful claim as it was me doing the shutting down.

does any one know a company which provides cover for ltd company contractors which would pay out in the event of a termination of contract?

or even if what i have stated above is true? any help would be greatly appreciated.

does this help?

http://www.antinsurance.co.uk/contract.html

Quoka

I took out income protection 2 months ago for £1500 per month at £36.00. I have just had a letter from Antinsurance stating that they are putting my premium up to £42.30 some 15% increase.

Can you imaging taking out car insurance and then them upping the premium two months into an agreement without making a claim?

I have spoken to the girl in the office who just stated company policy and I am giving the option for them to respond.

There is no notice period - take it or leave it. I feel as though I have coaxed in and then beaten over the head!

GOOD WORK!

dunstonh

Can you imaging taking out car insurance and then them upping the premium two months into an agreement without making a claim?

No. Thats because its a contract agreed at that figure. Antinsurance (and the others) is not a guaranteed premium. If you want a guaranteed premium then you you usually find that these are not the cheapest providers at the start but over the long term they can be.