Income Protection Insurance

NeilC1965

I have an Income Protection Insurance Policy with Canada Life
This is due to expire on my 60th birthday for cover (7 years from now). The policy was originally taken out when I was 30 , and I had planned to retire at 60 at that point in my life.I took an additional two options of Increasing Claim Option and also the No claims refund option.The latter pays out 50% of the total premiums paid under the policy.

What will the situation be if I am out of work for a period of time , or possibly even semi-retire before I reach the age of 60 , but find myself incapacitated and unable to work , such that my monthly income is significantly reduced from its current level? I would be maintaining the policy monthly payments , so I assume that the policy pay out as per my most recent level quoted around £2000 pcm?.
What if I decide to fully retire before 60 due to having sufficient income ? Would the policy pay out in those conditions?i.e I am incapacitated , and unable to work even though I don't need to?

I would like to continue the monthly payments to hopefully recover the 50% of premiums paid for obvious reasons.
I am fit and healthy at the moment with no intention of claiming, but every intention of retiring before 60!

I should add , that no where in the policy document is retirement or being out of work before policy end date is mentioned.

Weighty1

If you retire before age 60 then you wouldn't be able to claim on an IP policy normally as you need to be able to prove loss of earnings. Normally they also limit the amount you can claim to around 60% of your gross income so if you started working part time you may find yourself overinsured and only able to claim a portion of the benefit amount.