Redundancy Insurance

AnotnaC7

After a brush with HR circa 2017 I thought it might be a good idea to take out an Income Protection insurance policy, seemed a good enough deal at the time pre COVID-19. They have increased the premium slightly over the last 3yrs but today they have notified of a premium increase of around 56%. Can they legally increase a premium by this much mid term?

Sandtree

You have presumably bought an ASU/PPI policy  in which case it’s not mid term. The policy is 12 months and each year is a new policy which  neither party is required to offer or accept 

Weighty1

It is not unusual for premiums for these sorts of policies to increase.  You are actually lucky as many providers of redundancy cover has been simply declining to offer new cover to policyholders at the annual renewal point.  You just need to weigh up, is the increased premium worth ensuring the cover is in place rather than not having the cover at all?

AnotnaC7

This is not renewal as it runs from August, this change is after 5 months of what I would class as a term. You are correct very difficult for this kind of cover now.

Sandtree

who is the policy from?

AnotnaC7

Policy is with Assurity

Druid_Getafix

Interesting. Very similar situation from another provider, Best Insurance - who indicate they are Broker (but seem to have their own policies), this a Short Term (Annual) Income Insurance policy, which I have had rolling over for a couple of years now. Monthly cost on annual schedule was £64 cover was £2350 per month this was changed in April 2020 mid policy to £68 per month and cover reduced to £2000 per month, it was then changed again in October 2020 to £92 per month with same £2000 per month cover.  Have now been advised (27 Jan) by form letter that it will increase to £172 per month.  This is a pure income protection policy with no accident or illness part to the cover. While I recognize that the insurer has changed the risk profile it is no longer a viable choice really so I am looking around but with a firm view to either change or cancelling this policy.

Interestingly, most policies of this type have been withdrawing although you cannot obtain one if you know or have been made aware that you may be laid off or made redundant etc.

unkle

You'll find in the policy it has a reviewable premium clause, assuming they do they can change every month if they wish.

https://www.moneyadviceservice.org.uk/en/articles/income-protection-insurance-choose-the-right-policy-and-cover

Druid_Getafix

It does as I know but was just highlighting that pure Income Protection policies if still active are very pricy.  Can get a Accident and Sickness one for £60 per month that covers £2500 and if made redundant offers £1500 so am off to look at it closer and then shift.

AnotnaC7

That sounds interesting indeed

greekgirl

Druid_Getafix said:

It does as I know but was just highlighting that pure Income Protection policies if still active are very pricy.  Can get a Accident and Sickness one for £60 per month that covers £2500 and if made redundant offers £1500 so am off to look at it closer and then shift.

hi there  im also with Best and they have hiked me from £90 to £190 for redundancy cover. This is impossible for me.

Would you mind sharing who you were looking at for the new policy you mention above?