Does anyone know how permanent health insurance works?

FIRSTTIMER

I pay £27 a month fixed for £3000 monthly benefit should I become too ill to work. This is with Legal and General and the policy is in force until age 65. The premium is fixed.

I just wondered, what actually happens if I change jobs or have a sudden change in income that maybe lower? Do I need to tell them about changes all the time?

Also, is it the doctor who signs me off sick or do legal and general send someone round. I am just checking my financials and want to make sure its fit for purpose should circumstances change in my life or if the policy just needs to sit there until I ever need it.

Thanks,

huckster

Have you read the policy documents ? That should tell you the information you are seeking.

From what I understand, you don't need to advise of change of jobs.

If you became too ill to work, you register the claim, submitting wage slips or self employment accounts and Doctors fit notes/reports. L&G may have documents they send to your Doctors for their completion and return.

FIRSTTIMER

Great, thanks for this. I was thinking you had to keep telling them every time your job changes as you would end up in higher risk jobs and then sometimes lower risk jobs hence premium changes all the time.

huckster

A little curious as to why anyone would ask questions like this online.

Reason for this is, that Insurances are a contract between the parties. Therefore you have to read the contract ( policy documents) to see what it says about changes you have to report. If you are in any doubt, then it is best to contact the Insurers.

There are too many different Insurance contracts and the L&G information online might not be relevant to your particular contract. L&G online information suggests you don't have to report change in jobs but does this apply to the Insurance you have taken out ?

Read the policy and contact L&G if still in doubt.

FIRSTTIMER

Thanks for this info

lisyloo

There is a limit of 75% of gross income (this is so there is an incentive to return to work).
If your income changes it’s worth checking your cover is still correct or you’ll be paying for something you can’t actually receive.
In general if you change jobs a review would make sense as you could (for example) work for an employer that provides this cover for you.

Note that not all policies are equal.
A high quality policy would cover you for not being able to do your own job, a budge one means you’d need to be unable to do ANY job, which might mean if you were an architect and got hit on the head and forgot everything (has happened) then you’d be expected to stack shelves.

If you don’t have an advisor it’s up to you to read the documents and call the company with any questions.

I’d certainly recommend a review of all benefits when you change jobs. Larger employers of mine offer PHI as part of free employment benefits.

Weighty1

With L&G you do NOT need to inform them of occupation changes. They don't generally expect people to go from lower risk jobs to significantly higher risk jobs.

You would need to ensure the level of cover is not too much though if you took a lower paid role. With L&G I'm fairly certain that the limit is 60% of your gross income, so you'd need to always earn at least £60,000 to be able to claim the full £3k/month.