Group income protection

dodgyeyes

Further to my earlier post, can anyone tell me how the insurance company works out a settlement figure? There are 18 years to go on the policy which is currently paid monthly and taxed at 20%.

Any help would be appreciated - my employer wants me to come up with a figure I would accept but it's a stab in the dark for me.

InsideInsurance

What do you mean a settlement figure?

If you make a claim under employers income protection policy you normally get a predefined proportion of your salary after X weeks until either your fit to work or hit the agreed retirement age.

As an example my last employer scheme paid 75% salary after 13 weeks up to well or age 65

dodgyeyes

You are right - at present I receive a monthly income whilst off sick. I have a permanent disability that prevents me from working and hence the insurance is due to pay until I am 65 years of age. However, there is an option that the insurance company may settle the claim in a lump sum instead of monthly payments and I was wondering how they work that out? I don't have to take it if I am not happy with the offer but its a way of them getting me off their books early i suppose. It is not an official 'option' - just the insurance company trying to get rid of me early!