We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Unemployement & Disability Insurance

When we got our house in october 2007, we took out unemployment and disability insurance for my partner as he works in the construction industry. This insurance was to continue until we decide to cancel. We got a letter this weekend from Payment Shield, (the insurance company) basically saying that they are putting our premium up by nearly £5 a month, we pay £30.13 as it is already. They say that this is due to the current economic climate. They also charged £3 for an administration fee of a new certificate!!!

Does anyone know if the insurance company are allowed to do this?

Comments

  • dunstonh
    dunstonh Posts: 121,292 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Does anyone know if the insurance company are allowed to do this?

    Yes they are. The premiums are reviewable and that is stated in the policy conditions.

    If your mortgage payment has gone down and is now lower than the amount being protected, you should inform your mortgage adviser, IFA or paymentsheild directly so they can lower the sum insured. This will in turn lower the monthly premium. Paying for higher cover than the mortgage amount (plus insurances) will not result in a higher payout in the event of a claim with an MPPI. If you have PPI then it will.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • FSexpert
    FSexpert Posts: 16 Forumite
    ninab5882 wrote: »
    When we got our house in october 2007, we took out unemployment and disability insurance for my partner as he works in the construction industry. This insurance was to continue until we decide to cancel. We got a letter this weekend from Payment Shield, (the insurance company) basically saying that they are putting our premium up by nearly £5 a month, we pay £30.13 as it is already. They say that this is due to the current economic climate. They also charged £3 for an administration fee of a new certificate!!!

    Does anyone know if the insurance company are allowed to do this?

    Yes they are. Your policy will detail how and when they change the premium. You may be able to cancel the policy without penalty due to the changes but in the current climate that may not be a good idea.
  • Thanks for that, its just frustrating that with all other prices going up they decide to put the premium up on the insurance. My partner has just been made part time an unfortunately we don't get any help to cover this. A sign of the times!!!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.