Redundancy/Unemployment cover question about exclusion period and job notice

RobHT

Sandtree said:

RobHT said:

Sandtree said:

PHI would replace the AS and is a much better product hence the price difference.... its price is fixed, your insurers cannot cancel it other than for non-payment and it pays out until you retire or are fit to return to work. AS pays out for 1 or 2 years and that's it. The average PHI claim is just over 6 years which means even those with good AS policies receive 4 years less income

As was reported on the Insurance section here, when covid struck many people found their ASU providers cancelled the policies or if they offered renewals it had gone up 3-4x than the last year... those with PHI insurers couldn't cancel and couldn't increase premiums. 

I didn't notice that they can cancel the policy, !!!!!!... The renewal price should not exceed the inflaction rate as increase, or not?

Anyway, the issue is that no one offers unemployment insurance standalone, at least now..
Then, what about the normal sicknesses? You normally don't get sick for so long, otherwise it would be a critical illness, am I wrong?

My critical illness includes a lump sum of 150k, but it's just about critical illness which includes also premium stuff, that is, more common health complications. That costs me 72 a month... Back then, I thought that this was the first thing to insure, but now things summed up and I need to manage better these deals  

No, price will increase to reflect inflation, claims experience and the fact you are getting older hence people saw prices increasing four fold in 2020. PHI gives you certainty on premiums and you won't be priced out when you get older and are more likely to claim.

Critical illness is explicit conditions to explicit levels as defined on the day you bought it, there are plenty of other things that can take you out of work long term that doesn't trigger CI cover particular when you consider medical progress... on old CI policies certain heart conditions required you to have open chest surgery to be able to claim but what used to be done by major surgery can now be done by keyhole so claim is declined. It can go the other way too... people can be lucky and recover from their CI and return to work now mortgage free etc.

For me personally, PHI is the most important insurance as you can still pay your mortgage if your income is still being paid by the PHI. CI is more of a secondary consideration if you have spare cash

I think I need a clarification on the four fold increase, what do you mean precisely?

Critical illness with lump sum I think it will suit me better than anything else, I've decided to rent due to several reasons, therefore, no need to cover mortgage.
Good point on the forever monthly income though, but it won't pay all I need, I'll need to downsize anyway and touch my cash through the process, obviously I have cash for such situations.
In any case, no one offers me only unemployment insurance due to redundancy, they come in all-in-one package, I can't spend too much money just because I need to double the insurance due to missing offers in the market...

Why PHI doesn't increase in price? What about the premium? That should increase with the inflation, regardless if they ask me more money.

Regarding unconvenient situations with the claim, I can only hope I'll get the money, in any case, my level of coverage was really the best in the whole market, not really bad, plus is not detailed as you say.
Example, if I get cancer, regardless if it's bad or not, the pay out. Hearth conditions are different, but good point of yours.

150k of lump sum is not common at all, generally they give you around 70k and it's quite silly, the guy on the phone was surprised about my request for an increase.

Sandtree

4 fold increase? Exactly what it says... they were paying £40 a month and their renewal came in at £160, take it or leave it

PHI doesn't increase in price because its long term insurance and not an annual policy... you can index link it so both premiums and benefit increase with inflation but you can chose not to and so if you are 30 years from retirement you will pay the same premium for 30 years. In theory the insurer estimates inflation, changes in morbidity etc and reflects that in the premium so all the risk sits with them and you have certainty.

Rental I would argue is even worse... no matter how much insurance pays out you will never have to stop paying rent at least with a mortgage you can payoff, the largest monthly outlay that most of us have is gone. 

RobHT

Sandtree said:

4 fold increase? Exactly what it says... they were paying £40 a month and their renewal came in at £160, take it or leave it

PHI doesn't increase in price because its long term insurance and not an annual policy... you can index link it so both premiums and benefit increase with inflation but you can chose not to and so if you are 30 years from retirement you will pay the same premium for 30 years. In theory the insurer estimates inflation, changes in morbidity etc and reflects that in the premium so all the risk sits with them and you have certainty.

Rental I would argue is even worse... no matter how much insurance pays out you will never have to stop paying rent at least with a mortgage you can payoff, the largest monthly outlay that most of us have is gone. 

Incredible... I didn't know this detail...

Well, buying instead if renting when you have such insurance is not so bad, but now it's not the right moment for sure, I'll come back on this later .
The houses are worth 1/3 or max the half where I live, in any case are low quality and will make me spend tons of money for reconstruction one day, as well as regular maintenance.
In general, rent gives me freedom and zero liabilities, I consider it priceless, plus I will always depend from my job, nothing will remove this in life, unless I'll be extremely successful with my investments as I've planned.
Plus all the people that failed or bankrupt in life owned an house/apartment, it's not a coincidence.
If you want to say something about it, say it please, I love discussing this topic, but I tend to go hard on the UK market and quality, just so you know in advance .

There is one problem that I can't solve though, the unemployment insurance is not offered standalone... I'll keep in mind your suggestions!!!

Marcon

RobHT said:

400ixl said:

If you receive a payment in Lieu of notice (PILON) you would not get any payment for the period that covers.

So if the company had to give you 3 months notice, but instead made your redundant immediately terminating your employment and instead paid you those 3 months as a lump sum, you would not be entitled to any insurance payment for that period of time as your employer will have paid your salary for that time.

The redundancy lump sum is a different figure.

Thank you.
In my case it would be one month notice as stated in the contract, as well as the majority of people in UK I believe, the UK market is not stable like in central EU, or definitely it works in a different way, I don't think that anyone offers 3 months notice.

So in my case, I can start the claim after I completely ended the work relationship with the employer.

Do you know what happens in this case?
I've subscribed a few days ago, if I'm made redundant tomorrow, what happens to the coverage? Will it start in 4 months, or it will be invalidated because the period "was not covered"? (If I can say it in that way)

Does it go in contrast in anyhow with any company package? At the moment, it's offered by the company in terms of sickness and accident only. As far as I know, only the life insurance (for death) could go in contrast.
(my personal package has all of them, no other choice, so it's about unemployment, accident, sickness)

Plenty of people are on 3 or 6 month notice periods if they are senior enough. Long serving employees are also likely to have notice periods of more than a month to comply with statutory minimum notice periods the employer must give. These are:

• at least one week’s notice if employed between one month and 2 years
• one week’s notice for each year if employed between 2 and 12 years
• 12 weeks’ notice if employed for 12 years or more

RobHT

Marcon said:

RobHT said:

400ixl said:

If you receive a payment in Lieu of notice (PILON) you would not get any payment for the period that covers.

So if the company had to give you 3 months notice, but instead made your redundant immediately terminating your employment and instead paid you those 3 months as a lump sum, you would not be entitled to any insurance payment for that period of time as your employer will have paid your salary for that time.

The redundancy lump sum is a different figure.

Thank you.
In my case it would be one month notice as stated in the contract, as well as the majority of people in UK I believe, the UK market is not stable like in central EU, or definitely it works in a different way, I don't think that anyone offers 3 months notice.

So in my case, I can start the claim after I completely ended the work relationship with the employer.

Do you know what happens in this case?
I've subscribed a few days ago, if I'm made redundant tomorrow, what happens to the coverage? Will it start in 4 months, or it will be invalidated because the period "was not covered"? (If I can say it in that way)

Does it go in contrast in anyhow with any company package? At the moment, it's offered by the company in terms of sickness and accident only. As far as I know, only the life insurance (for death) could go in contrast.
(my personal package has all of them, no other choice, so it's about unemployment, accident, sickness)

Plenty of people are on 3 or 6 month notice periods if they are senior enough. Long serving employees are also likely to have notice periods of more than a month to comply with statutory minimum notice periods the employer must give. These are:

• at least one week’s notice if employed between one month and 2 years
• one week’s notice for each year if employed between 2 and 12 years
• 12 weeks’ notice if employed for 12 years or more

The seniority doesn't change the contract... Whatever you have from the first day, it will remain exactly in that way.

In IT is a joke to remain for a long time, so all these silly "benefits" don't apply to me at all, they are just for people that believe to have some right, and as far as I can see, they are pretty useless.