Income protection after job loss

Luke451

Weighty1 said:

If you start making a claim and subsequently get fired/laid off then this does NOT affect the claim because you would be treated as being unable to work (provided you can still provide a sick note).  Once your GP is no longer willinng to provide a sick note then the policy will no longer pay.  If you'd been fierd you would then need to find alternative employment.

If you were fired/laid off and THEN became sick then you would not have an income to protect since you were not working at the point when the claim arose so no claim would normally be paid.  That said, there are some policies which will guarantee to pay a minimum amount of income (often £1,500/month) irrespective of your income at the point of a claim arising.  However, in this instance your inability to work, because you are NOT employed, could be assessed on 'activities of daily work' (ADW) which are typical everyday tasks of which you may need to be unable to do 3 of 6 before a claim would be paid out.  This ADW claims criteria makes it far more difficult to claim on a plan than whilst employed. 

Thanks, I just noticed such thing the other day.

Are you aware of any protection as such that doesn't care about the income? Or that maybe it considers the salary of the previous financial year or similar?

BarelySentientAI

You can't insure against something that has already happened.

It sounds like you're asking if anyone will sell you insurance to pay out an income that you already don't have any more.  That's not a thing.

Weighty1

Luke451 said:

Weighty1 said:

If you start making a claim and subsequently get fired/laid off then this does NOT affect the claim because you would be treated as being unable to work (provided you can still provide a sick note).  Once your GP is no longer willinng to provide a sick note then the policy will no longer pay.  If you'd been fierd you would then need to find alternative employment.

If you were fired/laid off and THEN became sick then you would not have an income to protect since you were not working at the point when the claim arose so no claim would normally be paid.  That said, there are some policies which will guarantee to pay a minimum amount of income (often £1,500/month) irrespective of your income at the point of a claim arising.  However, in this instance your inability to work, because you are NOT employed, could be assessed on 'activities of daily work' (ADW) which are typical everyday tasks of which you may need to be unable to do 3 of 6 before a claim would be paid out.  This ADW claims criteria makes it far more difficult to claim on a plan than whilst employed. 

Thanks, I just noticed such thing the other day.

Are you aware of any protection as such that doesn't care about the income? Or that maybe it considers the salary of the previous financial year or similar?

I'm not aware of any that exist, apart from those with the £1,500/month limit.  Let's face it, if there was an income protection plan which paid out more than what people earned then there'd be plenty of unscrupulous people who would insure themselves to the hilt and then find a way of becoming ill with something very difficult to disprove, like a mental health condition such as stress or depression or back pain and they'd be quids in.

For those who are self employed most insurers will take a fair and reasonable assessment of someones income and many would go on the last years tax return or accounts as they appreciate some occupations have busier and quieter periods.

Luke451

BarelySentientAI said:

You can't insure against something that has already happened.

It sounds like you're asking if anyone will sell you insurance to pay out an income that you already don't have any more.  That's not a thing.

I was asking the question always referring to something appropriate, like a financial year.

Otherwise, as I planned, I can't do anything risky until I get a new job and my insurance would cover after that.

Something bad can still happen, but I can only reduce the risk by remaining employed most of the time, so no downtime in the professional career.

(actually since the day I receive the notification of job loss)

BarelySentientAI

Luke451 said:

BarelySentientAI said:

You can't insure against something that has already happened.

It sounds like you're asking if anyone will sell you insurance to pay out an income that you already don't have any more.  That's not a thing.

I was asking the question always referring to something appropriate, like a financial year.

Otherwise, as I planned, I can't do anything risky until I get a new job and my insurance would cover after that.

Something bad can still happen, but I can only reduce the risk by remaining employed most of the time, so no downtime in the professional career.

(actually since the day I receive the notification of job loss)

So no, you can't be told that you are losing your job and then afterwards buy insurance to protect against it.

Luke451

BarelySentientAI said:

Luke451 said:

BarelySentientAI said:

You can't insure against something that has already happened.

It sounds like you're asking if anyone will sell you insurance to pay out an income that you already don't have any more.  That's not a thing.

I was asking the question always referring to something appropriate, like a financial year.

Otherwise, as I planned, I can't do anything risky until I get a new job and my insurance would cover after that.

Something bad can still happen, but I can only reduce the risk by remaining employed most of the time, so no downtime in the professional career.

(actually since the day I receive the notification of job loss)

So no, you can't be told that you are losing your job and then afterwards buy insurance to protect against it.

No insurance mentions this scenario, you can actually apply, but I was just referring to the best practice, just to be safe.