How long does income protection insurance pay out?

lassfarfromhome

Does anyone know whether these policies generally pay out until retirement age, or is it more usual to have a fixed term?  I've been paid through one of these policies for the past two years.  the info my employer gave me about it doesn't mention how long the policy pays out for.  I'm reluctant to ask my employer the question, but I might have no choice.  Would be good for peace of mind to know that I'm covered to retirement if i need it.

Aretnap

It will depend on the type of policy. The cheap variant does indeed pay out only for a year or two at most. There is also a full fat version (also known as permanent health insurance) which will pay out until retirement age, or some other pre-determined date we'll into the future. The documentation should really explain what it covers; if it doesn't ask your HR department - or the insurer itself if you prefer. 

lassfarfromhome

It's definitely not the cheap variant.  All I got from my employer was a two-sided letter explaining some aspects of the insurance.  HR functions are performed by one person (it's a v small company) who is not really an HR person.  Might try the insurers first.

dunstonh

Proper income protection will pay out until the end age (typically retirement or close to retirement depending on what you chose) or when you are well enough to return to work (caveat on work definition).

Payment protection will usually only payout for 12 months but some will go 24 months.

csgohan4

lassfarfromhome said:

It's definitely not the cheap variant.  All I got from my employer was a two-sided letter explaining some aspects of the insurance.  HR functions are performed by one person (it's a v small company) who is not really an HR person.  Might try the insurers first.

i generally don't rely on employer based insurance, as they may have caveats or only cover if your employed for example. You need to check how good the coverage is and what caveats there is. Good ones cover until a specific age you specify if sourcing it yourself, which is generally retirement age

lassfarfromhome

csgohan4 said:
i generally don't rely on employer based insurance, as they may have caveats or only cover if your employed for example. You need to check how good the coverage is and what caveats there is. Good ones cover until a specific age you specify if sourcing it yourself, which is generally retirement age

It's a bit late for that unfortunately as I'm currently claiming under my employer's policy and have been for the last 2 years or so.