Income Protection Insurance

andycee2

Hello all,
maybe someone out there can help. I've been signed off work due to the onset of a disabling condition for 5 years and since then have been receiving a monthly benefit through my income protection insurance which is part of my salary package. Payments are made until retirement as long as my medical reports etc satisfy the insurance company. Payments are made to me via the regular payrol are work rather than directly from the insurance company which is due to the fact my employer is the policy holder (as a group staff cover) and I am the recipient. My question is during the current financial climate does anyone know what would happen to my payments should any of the companies concerned cease to be.

I have been trying to clarify the position but they are being slow to respond, just wondering if anyone by chance has any insight, any advice gratefully received.

Have a good day.

Andrew

dunstonh

My question is during the current financial climate does anyone know what would happen to my payments should any of the companies concerned cease to be.

You are protected under FSCS general insurance protection for 100% of the first £2,000 plus 90% of the remainder of the claim.

somewhatnew

A process will happen, typically in the following order
- Another company will purchase the ailing insurer and take over the contract and continue paying
- The Government will underwrite the insurer (similar to the Northern Rock fiasco) and take on the contract and continue paying
- The FSCS that dunstonh refers to is the Financial Services Compensation Scheme. http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/

Hope that helps