Redundancy Insurance

Druid_Getafix

greekgirl said:

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

I was looking at a number of them but as I recall it was via a comparison site which was not one of the usual ones, will look for the site - think I saved it - as I recall it was AVIVA but mostly Accident and Illness and seemed to show a reduced value if you were made redundant but need to dig more as I got side tracked. Odd name but I cannot recall it  right now.

Druid_Getafix

What are the Forum rules about sharing a website?  I suppose if place it here as a name rather than a link then you can look it up and do your own research. 

If you look for something called anorak.life a broker with the usual WWW prefix and it was income protection
There are also a few limited liability clauses being applied..
A few come up in the search Royal London , LV and Legal & General as well as the one below:

Income protection @ Aegon - Personal Protection Policy cost being shown £76.11 monthly based on criteria I entered to obtain cover of £2450 per month

Full benefit after redundancy

- If you were made redundant within last 12 months, you can make a full claim.

Restricted benefit after redundancy

This policy has restricted benefit, which means your benefit will be restricted if any of the scenarios below happen to you. Falling into ‘restricted benefit’ means any claims you make will be assessed against stricter criteria and your monthly income protection payments will be capped at a maximum of £1,500/month. Not working If you’re not working, it will affect your ability to claim as you fallback into restricted benefit. Redundancy If you're made redundant, it will affect your ability to claim as you fallback into restricted benefit. Hopefully no rules broken and info assists.

Weighty1

Druid_Getafix said:

What are the Forum rules about sharing a website?  I suppose if place it here as a name rather than a link then you can look it up and do your own research. 

If you look for something called anorak.life a broker with the usual WWW prefix and it was income protection
There are also a few limited liability clauses being applied..
A few come up in the search Royal London , LV and Legal & General as well as the one below:

Income protection @ Aegon - Personal Protection Policy cost being shown £76.11 monthly based on criteria I entered to obtain cover of £2450 per month

Full benefit after redundancy

- If you were made redundant within last 12 months, you can make a full claim.

Restricted benefit after redundancy

This policy has restricted benefit, which means your benefit will be restricted if any of the scenarios below happen to you. Falling into ‘restricted benefit’ means any claims you make will be assessed against stricter criteria and your monthly income protection payments will be capped at a maximum of £1,500/month. Not working If you’re not working, it will affect your ability to claim as you fallback into restricted benefit. Redundancy If you're made redundant, it will affect your ability to claim as you fallback into restricted benefit. Hopefully no rules broken and info assists.

This is NOT redundancy cover.  This is long-term income protection for accidents & sickness.  What that text is basically saying is that if you become incapacitated after you've been made redundant it affects you ability to claim.  This is because pretty much all insurers will either limit the amount they will pay out to £1,500 or thereabouts, since after redundancy you are not in paid employment and that's what long-term income protection is for (protection against loss of earnings due to ill-health and incapacity to work).  The stricter criteria is that you'd be assessed on your ability to do certain everyday tasks, rather than your ability to do your job.  These tasks are extremely basic, such as walking 200m, climbing a flight of stairs, getting in and out of a car, plus others.  Normally, if you can't do 3 out of 6 of these tasks you'd be able to claim.  The likelihood is to claim on that element, you'd either need to have broken both legs OR be in a near vegetative state.

Druid_Getafix

Weighty1 said:

Druid_Getafix said:

What are the Forum rules about sharing a website?

This is NOT redundancy cover.  This is long-term income protection for accidents & sickness.  

Have to agree, alas needed to figure this out, read into it and check it, so shared what I found for @ greekgirl ' s info and interest. Seems that pure Income Protection - Unemployment Cover type is not available on the market at all, if you want to keep any cover you think you may have yo need to by the extortion fee or drop the cover.  

SBeatt73

I'm with Assurity, I've just posted a new article as recently had a claim rejected for short term income protection. And they're going to increase premiums from £24 pm to £37! They won't pay out because apparently dividends I receive are more than the "jobseekers allowance threshold." T&C's don't even specifiy what this is or how much it is. Thinking about appealing it as they even define directorships as self employed 😔

Weighty1

SBeatt73 said:

I'm with Assurity, I've just posted a new article as recently had a claim rejected for short term income protection. And they're going to increase premiums from £24 pm to £37! They won't pay out because apparently dividends I receive are more than the "jobseekers allowance threshold." T&C's don't even specifiy what this is or how much it is. Thinking about appealing it as they even define directorships as self employed 😔

It's not unusual for redundancy policies to be nigh on useless for the self-employed or directors of their own ltd companies.  Often you have to have wound the business up completely to be classed redundant OR to become insolvent.  If you've made yourself unemployed but have continued to take a dividend from the business the chances are you've exceed the threshold of how much of your income they could cover, which is often either the mortgage costs +25-33% or £1,500/month.  Obviously, I'm just guessing here as you've not provided a lot of info, but this is guesswork based on knowing how these plans work.

Geemac_2

We also have an income protection policy managed by MMS funded by Lloyds. We got a letter in November to say it was going up £10 a month from £79 to £89 and then again at weekend received another email saying they were increasing again by a further £40 to £139 a month. What’s to stop them keeping increasing this. I get there’s been more people made unemployed by Covid but I feel they’re cashing in on this too by increasing by huge amounts. Anyone any recommendations for another company. 

Weighty1

Geemac_2 said:

We also have an income protection policy managed by MMS funded by Lloyds. We got a letter in November to say it was going up £10 a month from £79 to £89 and then again at weekend received another email saying they were increasing again by a further £40 to £139 a month. What’s to stop them keeping increasing this. I get there’s been more people made unemployed by Covid but I feel they’re cashing in on this too by increasing by huge amounts. Anyone any recommendations for another company. 

They are not cashing in, they are ensuring they can remain profitable.  Actuaries work to quite fine calculations about expected redundancy rates and this pandemic has blown all their calculations out of the water.  There's not a lot you can really do as to my knowledge no redundancy provider is offering cover to new clients.

Sandtree

Geemac_2 said:

 What’s to stop them keeping increasing this. I get there’s been more people made unemployed by Covid but I feel they’re cashing in on this too by increasing by huge amounts. Anyone any recommendations for another company. 

The fact for each £1 they raise it by they will lose X customers. Insurers with no customers don't make profits for long.

Almost no one is writing cover on a new business basis so either its pay the premiums because the risks are higher or cancel and look to purchase again in the future when insurers feel more comfortable writing this class of insurance.

dunstonh

but I feel they’re cashing in on this too by increasing by huge amounts.

Most companies have pulled out of the market and stopped offering cover.   If its that profitable, why would they all be doing that?