Buying the Income protection insurance. Is it worth? How to understand exclusions?

yessuz

Hi,

Basically I am looking for the income protection insurance.

While I understand the Exclusion and waiting periods, I have some issues understanding the following:
"The main reasons we decline to pay some claims for Involuntary Unemployment:
-- Aware of any impending unemployment at the start date of your policy or within 120 days following the start date"

What does it mean - "Aware of impending unemployment"?
Is it that you have already received the letter stating that you will be unemployed and consultation is started?
Or the letter that my position is as risk - but nothing is clear yet.
Or just a plain statement from the top management, stating: "well, we have been acquired, so there might be some reductions, but nothing is clear yet"?
Which one of those?

Also, if there is the question: Is the company going the reorganisation - does it mean that employee should have received some official notification about the reorganisation, or it is already with the administration, or what? For example, if this is the public traded company, how does the statement "we are planing to reduce UK working force by, let's say, 500 out of 5000 within one year" - is this the "knowledge of the reorganisation/impending unemployment"?

These are the questions which might increase/reduce the monthly premiums. I would be glad if anyone would help with answers. Many thanks!

dunstonh

Basically I am looking for the income protection insurance.

it seems you are actually looking at PPI.

What does it mean - "Aware of impending unemployment"?

It can be notification in writing or verbally that a restructure of the company is happening or changes that could result in redundancies.

Or just a plain statement from the top management, stating: "well, we have been acquired, so there might be some reductions, but nothing is clear yet"?

That would be too late to get cover.

yessuz

many thanks.

but does the impending unemployment and notification that 10% of population could be reduced, but it is not decided will it be you or not - is it the same?

stator

Yes, any hint of news at all that there might be reductions in work force at your employer will invalidate the redundancy part of your Income Protection Policy.

yessuz

stator wrote: »

Yes, any hint of news at all that there might be reductions in work force at your employer will invalidate the redundancy part of your Income Protection Policy.

thanks!
When I look at the explanation in terms of one insurance company:

IMPENDING UNEMPLOYMENT

Unemployment which you have been notified of either verbally or in writing, or a re‐organisation, restructure or programme of redundancy affecting your role, which is formally announced by your employer.


so, in this case, if you are worker of the Port Talbot Steel, who has just announced (today) that they will be cutting 1000 jobs (but negotiation with unions and so on would probably take few months and some people will not be redundant, obviously) - workers of this company would not be able to buy the PPI insurance tomorrow?

stator

That's correct.

(Or rather, to be tecnical we should say that they might be able to BUY the insurance, but they won't be able to make a CLAIM for quite a while. If they survive the redundancies and the company carries on trading, there will come a point in the future where they might be able to make a claim. But I am not sure at what point the insurance companies would accept that a previous notification doesn't matter anymore.)

I would also point out that most IPI insurers either want to know the Employer's name or the Industry that they work in. If you were to apply for IPI working in the steel industry you would probably be denied.