Critical illness cover v pension contributions. Your thoughts please

jonesMUFCforever

Baking_Mad wrote: »

Correct me if I'm wrong but wouldn't I (as a spouse) be eligible to pick up my OHs pension in case of his death?

Depends on the scheme and how old your OH is when/should they die.
You may not get a full pension.

kingstreet

Baking_Mad wrote: »

Ok, we didn't misunderstand.

What I meant by "at the insurance company discretion" is that they would have to see the proof from the doctor, etc in order to authorise the payment ( as indeed with any other type of insurance). Once authorised by the insurance co the employer will pay out 75% of salary till NRA.
My OHs employer provides this cover as a benefit to employees but can, however, decide to withdraw this benefit at any stage if they wish.

Hope this makes sence.

OK. Your husband's employer operates a Group Permanent Health Insurance scheme for its employees. The firm pays full salary for six months, then the PHI benefit kicks-in and that is subject to medical information - as all income protection claims would be.

The benefit is paid to the employer and it continues to pay the employee's salary, deducting tax and NI, hence the higher possible limit, 75% of earnings. Running/funding the scheme is at the employer's discretion.

In these circumstances, you do not need to consider income protection for him, but perhaps you may for yourself?

You need to sit down and establish your needs and prioritise them, according to your budget. Think about consulting a professional adviser, like an IFA, to review those needs and have a plan drawn up for what to address now and what to look at in the future, when resources allow.

Baking_Mad

kingstreet wrote: »

OK. Your husband's employer operates a Group Permanent Health Insurance scheme for its employees. The firm pays full salary for six months, then the PHI benefit kicks-in and that is subject to medical information - as all income protection claims would be.

The benefit is paid to the employer and it continues to pay the employee's salary, deducting tax and NI, hence the higher possible limit, 75% of earnings. Running/funding the scheme is at the employer's discretion.

In these circumstances, you do not need to consider income protection for him, but perhaps you may for yourself?

You need to sit down and establish your needs and prioritise them, according to your budget. Think about consulting a professional adviser, like an IFA, to review those needs and have a plan drawn up for what to address now and what to look at in the future, when resources allow.

Thank you so much for such a detailed explanation, I really appreciate it. As I don't work at the moment, presumably I can't get an income protection policy for myself. I'll definitely look into that as soon as I get the job though. Thanks again, kingstreet.

vaio

Baking_Mad wrote: »

Ok, we didn't misunderstand.

What I meant by "at the insurance company discretion" is that they would have to see the proof from the doctor, etc in order to authorise the payment ( as indeed with any other type of insurance). Once authorised by the insurance co the employer will pay out 75% of salary till NRA.
My OHs employer provides this cover as a benefit to employees but can, however, decide to withdraw this benefit at any stage if they wish.......

I was wondering if you can rely on this payment when doing you planning, I guess you mean "the insurer will pay 75% of salary until NRA" and equally, if the employer decides to stop paying the insurance/goes bust etc, then any people already getting the 75% will continue to do so.

kingstreet

Baking_Mad wrote: »

As I don't work at the moment, presumably I can't get an income protection policy for myself

Indeed you can. Houseperson cover is offered by many insurers.