Payment protection

d1234s

Please would it be possible to get some advice as I currently have payment protection with Barclays Partner Finance and have done for the past 5 plus years and I have also been sent a renewal quotation for the protection to continue for another year however........I have just received another letter stating that they have recently reviewed the policy and have decided to remove this product and it will no long continue.

 

The product I have covers me for 2 years pay out if I get made redundant up to I think 65 percent of my salary and was a pretty good policy and I don't think any companies offer such policy anymore. I think the closest I can get is a policy that pays out for a max 1 year if made redundant.

MorningcoffeeIV

What advice did you want?

DullGreyGuy

Companies do still offer it but they call it "income protection" because the name PPI became toxic.

What confuses matters is that Income Protection is the name for 2.5 products... ASU/PPI which is the budget version but covers unemployment. PHI which is the full fat version but most dont cover unemployment and a kind of PHI Light which sits somewhere between the two but closer to PHI

d1234s

Morning coffeeIV, I was just wanting to know if I can get any money back or compensation due to the company terminating my policy?

DullGreyGuy

d1234s said:

Morning coffeeIV, I was just wanting to know if I can get any money back or compensation due to the company terminating my policy?

No, just like you dont get your money back after having your car or home insurance for a year and not claiming on it.

The key shortfall of PPI/ASU over PHI is the fact it is an annual policy and so providers are free to change the terms, pricing or exit the market totally each year, some policy wordings even allow it mid year. PHI on the otherhand is a form of long term insurance and the one policy lasts until your 65th birthday (or whatever date you set) and often have either fixed premiums for life or premiums/benefits linked to a stated index (eg RPI).

A lot of people found their PPI policies were not renewed or renewal premiums were up to 5 times the year before during covid. PHI insurers on the otherhand could only increase premiums for new customers but because average policy lengths are measured in decades the movements were much smaller.