Income Protection.

jessmist

Hi,
I have been off work for the last few months.
I have just remembered that i have a income protection plan with Phoenix life. used to be Pearl.
I thought the deferred period is was 26 weeks but it's 13 weeks.
It covers me up to my 65th Birthday as long as i meet the qualifying criteria.
I have ms and had a relapse which caused me a lot of mobility problems.I am hoping to return to work when everything settles down but i am told it can take anything up to 12 months.
On my policy it says they won't except a claim after 90 days have passed from the deferred period.
So i am thinking of claiming now in case i don't get back to work for another few months.
If i put a claim in and i meet the criteria and then eventually return to work. Will my premium for the cover increase ? As the chances are i would probably suffer a relapse again at some point as i have another 25 years before i reach 65

I would appreciate any advice. As i never thought i would need the policy when i took it out years ago.

Thanks

InsideInsurance

Sounds like a PHI policy in which case you need to check the terms that you agreed to.

Some are written on a guaranteed premium basis meaning the premiums are locked. You dont get any form of "no claims discount" but neither do you get any penalty for having made a claim.

It is possible to have policies with reviewable premiums in which case they can be adjusted at periodic reviews.

In addition to guaranteed -v- reviewable you also get if you index link the benefit or not. If you choose an index linked guaranteed premium then the premium does change over time but only for inflation related adjustments.

jessmist

Hi,
Thanks for the reply.
I have looked at my policy and the value of cover increases each year in line with the retail price index.
I am given the option each year not to increase but i always except the increase and extra premium.

In the policy it reads.
Premium rates.
If the tabular premium rates are changed we will change your premium at the next anniversary of the start date. We will work out the new premium by applying to each amount of benefit the new rate which applies to your age and from the date when the cover for each amount of benefit started.We will also use any restriction or additional premium which applies to the policy when we work out the new premium.
We will tell you in writing about any change to your premium. We will give you the option of maintaining your old premium but you will receive a lower level of benefit.

The way i read the policy is that if i claim they would not raise my premium at the next anniversary by a silly amount. It would just go up by the rate of RPI.
Is my understanding correct?

Thanks

Nearlyold

Some PHI policies have reviewable premiums which allow the insurer to amend (increase or reduce) premiums in the light of overall claims experience. However the increase would only ever apply across all policies that cover the risk with a poor claims experience i.e. a particular occupation.


Premiums can't be increased for one individual because of their
on-going ill-health as this would defeat the whole purpose of Permanent Health Insurance. If this weren't the case insurers could increase premiums to completely unaffordable levels for any individual who had claimed and who was likely to claim again forcing them to stop the policy.

jessmist

Thanks for the reply.
I was just a bit dubious about making a claim now just. In case when i returned to work the premium shot up at the next anniversary.
The policy will pay out up until my 65th birthday. Unless it is a self diagnosed condition. or mental health then it will only pay out for 2 years.
It also says that if i return to work and then go off sick again with the same condition benefit will resume again without having to wait the deferred period again.
I am pleased i took out this policy years ago as with the nature of ms i will probably have to claim again on this policy before i retire.
Thanks

starrystarry

Presumably the policy was taken out before you were diagnosed with MS?

jessmist

starrystarry wrote: »

Presumably the policy was taken out before you were diagnosed with MS?

I took the policy out in 1999.
I was diagnosed last year.

jeffnail

Best is to contact the insurance company and complete a claim form,

jessmist

I will give them a ring tomorrow.
I am struggling at the moment with my ms and i was a bit concerned making a claim. As the chances are i will have to make a claim again before i reach retirement.

jeffnail

Normal PHI/Income protection plans allow multiply claims so really not an issue if you claim now and then again later

jessmist

jeffnail wrote: »

Normal PHI/Income protection plans allow multiply claims so really not an issue if you claim now and then again later

Thanks.
That makes me feel better claiming.
I took the policy out years ago and i have been lucky with my health till now.
I was just unsure about claiming and it effecting my premium and the probably claiming again if i have another relapse.

I appreciate all the advise you have all given me.
I will phone the insurance company tomorrow and get the ball rolling.

Thanks