Income Protection.

jeffnail

Let us know how you get on

jessmist

As i am still receiving full pay from work will this mean the insurance will still pay out my monthly benefit.
All it says in the policy is that they would adjust the monthly benefit if i was claiming on another insurance policy.
It says nothing about company sick pay or state benefits.

Thanks

jessmist

jeffnail wrote: »

Let us know how you get on

I will do.

Nearlyold

Most PHI policies will restrict the amount of benefit you can receive from the policy typically set at 60% to 75% of your normal gross income averaged over a certain period prior to the claim LESS any other continuing income such as sick pay etc. The PHI income is not taxable though. The restriction is so you don't end up better off when off work - which could be a disincentive to get back to work


This would mean you can't usually claim from PHI while on full sick pay from work - which is why the plans are available with different deferred periods.

starrystarry

jessmist wrote: »

As i am still receiving full pay from work will this mean the insurance will still pay out my monthly benefit.
All it says in the policy is that they would adjust the monthly benefit if i was claiming on another insurance policy.
It says nothing about company sick pay or state benefits.

Thanks

The monthly benefit is usually adjusted to take into account any continuing income. So ideally your deferred period should end when your sick pay ends. How long does your sick pay last? Is it 26 weeks full sick pay?

jessmist

I got a month's full sick pay every year. If i am not of sick the month's accumulate. Because of my length of service and i have been lucky with my health up to now. I will have a full year on full pay.
I have just looked at the income protection policy and it says:

We will restrict the benefit we will pay if you claim so that benefit under this policy and any other benefits you receive from any other sickness,accident or disability insurance policies are not more than:
The maximum benefit or 50% of your earnings.

starrystarry

jessmist wrote: »

I got a month's full sick pay every year. If i am not of sick the month's accumulate. Because of my length of service and i have been lucky with my health up to now. I will have a full year on full pay.
I have just looked at the income protection policy and it says:

We will restrict the benefit we will pay if you claim so that benefit under this policy and any other benefits you receive from any other sickness,accident or disability insurance policies are not more than:
The maximum benefit or 50% of your earnings.

So while you're still receiving full sick pay, the benefit will effectively be restricted to zero. You can still submit the claim, but they won't pay you anything until your sick pay stops.

jessmist

I gave the insurance company a ring this morning they are gonna send a claim form out.
He said they would look at my income and it may effect what level of benefit they would pay.So that will mean i won't receive anything until my full pay ends.
He did say that if i was unable to return to work and was claiming benefits. That benefits would not effect the insurance policy.
I have to put a claim in now as it has to go in no later than 90 days after the end of the deferred period. So he advised me to still put a claim in now in case i don't get back to work before my sick pay runs out.

jeffnail

Do you know what the deferred period is on your plan? - If you have full pay for a year then it should have been deferred 52 - This keeps the premiums down that you pay as the insurance plan only kicks in after the 52nd week when you full pay for sickness goes to 0. If however you have a 26 weeks deferred period on the plan then I think that the plan will not pay out anything as you are still receiving full pay.

However please check with the insurance company as soon as possible

jessmist

I took the policy out a couple of years after i started my job.
I get a month's sick pay every year. If i am not of sick in that calendar year the sick time accumulates.
My deferred period is 13 weeks.
I just filed the policy away and forgot about. I thought the deferred was set at 26 weeks.
Can you adjust the deferred period from year to year?
I will need to keep it set at a short period for the next few years. once i get back to work and start to build up my paid sick leave again.