ASU cover & PPI

smiler58

In May I amended my ASU to cover income upto 75% of my income and also took out PPI on my credit cards. At the time there was no indication from my employer that there would be any redundancies however as I work in the finance industry I thought it would be prudent to have cover in place. The policies have 90 day initial exclusion periods which have now just passed.
It is still not apparent if any redundancies will take place or if the company will fold, however our business volumes have dropped significantly and I cannot see how much longer the company can continue trading.
If I am advised of redundancy this month will I be able to claim as the 90 day exclusion periods have just now passed?

Porker

i beleive so - as long as you didnt know of impending redundancies when you bought the policy you should be ok. Hope it works out ok for you.

topquoteuk

Hi Smiler,

As Porker said, you should no problems making your claims assuming you didn't already know about confirmed redundancies(which you obviously didn't).

I do have a slight concern with something you have described. Most policies will only allow you to cover up to 65% of your income, so it might be worth looking through your policy documents to check its 75%! Another thing I picked up is that you said you had ASU cover and your PPI. With most providers they wouldn't let you make a claim on both your ASU and PPI at the same time as this would take you over the maximum threshold of cover (whether it be 75% or 65%).

Just a few things you might want to check and make sure you've got a cover which is what you thought it was!

Hope that helps!

smiler58

Thanks guys for your views. As regards the ASU cover and the PPI on my credit cards surely there should not be an correlation between the two? As and when I claim on my ASU policy they will pay me directly. The PPI on my credit cards will be paid directly into my credit card accounts, incidently the credit card covers states that the companies will pay 10% of the outstanding balance each month, I have a card for £10k and £5k so upto £1500 should be paid to my credit card accounts and the £1500 paid directly to me. I believe only the ASU payments relate to 65% of my salary, the PPI claims on my credit cards should not effect my ASU claims, should they???

dunstonh

As regards the ASU cover and the PPI on my credit cards surely there should not be an correlation between the two?

Yes there is.

Not just payment protection and ASU but employer sickness benefits, PHI, waiver of premium of life and pension contracts, loan and credit card protections and any form of insurance that provides a sickness benefit. Only mortgage payment protection is exempt up to the value of the mortgage repayment.

I believe only the ASU payments relate to 65% of my salary, the PPI claims on my credit cards should not effect my ASU claims, should they???

So, the answer to that is yes. The Govt sets the limit to prevent people being better off out of work then in work.

papito

smiler58, been reading your post...
hope you are still at work, but if not then hopefully you didn't had any problems claiming the ASU... how did you get on with the insurance claims...if I may ask. Who is your insurance provider?
your experience may help people in similar situations like me