Income protection insurance

hjr1987

I purchased income protection insurance in Jan 2020 before covid @ £45.20 a month.

The company has since increased the monthly payment by £13.60 to £58.80 a month. I received a letter today Feb 2021 informing me the monthly payment would now increase to £109.40 a month. This is a 100% increase in less than a year

Is this legally allowed, where do I stand in terms of my rights?

[Deleted User]

Yes, it's legally allowed.

You have the right to continue the policy at the new price, or to cancel it.

dunstonh

Is this legally allowed, where do I stand in terms of my rights?

Yes it is legal.  Your rights are to accept it or not accept it and the policy can end.

What makes you think that the premiums are guaranteed?

Sandtree

It sounds like you bought the AS(U)/PPI version of income protection which is a short term policy and often allows mid term review of premiums.  Premiums for this version of IP are typically much cheaper at the outset because they can be raised at a later date.

SaverRate

Look at changing your income protection if your not happy with the price. Although they no longer include redundancy. (due to covid!) If you go down this route go through a broker to get the best deal. Personally I would recommend Cura Insurance - I have used them multiple times now and never had an issue.
PS - I do not work or receive any incentive from them I just think out of the multiple brokers I have used in the past they are the best

mattyprice4004

Of course it is, do you expect them to fix premiums forever? That means someone who took out a policy in 1970 could still be paying 50p a month (for example). 
You can take it or leave it. 

Sandtree

mattyprice4004 said:

Of course it is, do you expect them to fix premiums forever? That means someone who took out a policy in 1970 could still be paying 50p a month (for example). 
You can take it or leave it. 

If it was a guaranteed premium policy, like many PHI policies are, then yes but whilst they'd still be paying a 50p premium the cover would probably also still be less than £100 per month.