Income Protection Payment Insurance after Redundancy - Am I being stitched up?

Flof

Hi
Just some advice please or intel on if my payment protection Insurance company is acting appropriately?

2 years ago, not long after the pandemic, things in my job sector were feeling a little shaky and as a 60 year old single woman with a large monthly mortgage, I decided to I needed to act in case something happened to my job.   There were not a lot of company's around who were willing to give protection in case of redundancy or sickness but I found one and decided to bite the bullet and sign up.  It was a huge £135 per month but weighing up potential disruption to my life should the worst happen I thought it worth it.   The protection had one month pay excess on it, which I thought fine and would pay out 75% of my salary should I need it, for 12 months.

2 years later, the worst happened, my company went into liquidation, I had of course made other preparations just in case like moving house for lower mortgage payments but I was thankful for this insurance.   I filled in all the forms as did my firm's administrators and was agreed in principal.

The insurance firm said I had to sign on for Jobseekers allowance and give proof of this and that I had been approved and of my first payment.  I had done this on the advice of my administrators anyway re National Insurance.  Provided all the proof required.  Received my first payment. sent off details.  Thankfully I was approved and about to receive my first payment for which I am so pleased i took this out.  However my insurance company want me to fill in forms every month showing that I have applied for 6-10 jobs throughout the month, every single step, response from employers and also send over a daily diary of my job search.  Any future monthly payments depend on this and also on me being on jobseekers allowance and send in proof of my payments from them.

I contacted them to say, surely, if I am receiving a monthly payment from you, the insurers, which is a reasonable amount of money.  I have to declare this to Jobseekers?  It does not seem right that I would still be signing on, still claiming housing benefit credit, If I have this money each month for the forseeable?  I had thought that I would then sign off and pay my dues such as council tax as is appropriate.  Also as I am signing on for Jobseekers, I see my advisor every two weeks and have to show them proof of looking for 3 jobs over the previous two weeks or my income could be stopped so why do I have to jump through these hoops with the insurers too?    They said the money I receive from them should not affect my benefits, that I should still sign on for the 6 months allowed and then get the proof that they will still pay my `national insurance contributions on another benefit should I still not have a job.   That I also have to actively prove to the insurers that I am looking for work.

All of this just does not sit right with me.  As I was made redundant of course I had a lot to sort out, as I have the option for funding up to 13 weeks after redundancy to get funding for training for work, after having been in the same job for 25 years I thought retraining was necessary and so have booked on to courses etc.   I have informed the insurers of this, that I volunteer at places where i would eventually like to work in order to make connections and have an opportunity of starting up a business with a friend that will take a little time.  My jobseekers advisors are absolutely happy with this and so if jobseekers are the benchmark that I am elligable for my insurance payments, again, why the extra hoops.

I have pointed out that i have possible 6 more years work before retirement.  I do not just want to take any job but want a job that will serve me in all aspects during that time.  I took out the insurance to alleviate as much stress as possible at a difficult time and the need to go through the signing on process etc. It was meant to be a bit of a comfort blanket which I had paid dearly for for 2 years.   I intended to take this protection until I had the job I wanted and not rush into anything but this feels very stressful and pushy.   I do want to work, would probably work even after my retirement age but what is the point of insuring oneself for a glitch in the future when this creates even more glitches?

Has anyone found themselves in the same position and what did you do.  Or do you have any advice on which direction to take?  My feeling is to tell my jobseekers advisor the situation as I really don't feel that I should be receiving benefits but if I do and am taken off these benefits my insurer will cease to pay me?

Am I being stitched up or do I make looking like I am looking to take any job and make up a daily diary my new job for the next few months while signing on!!  

Sorry long message but please advise?
Kind regards

dunstonh

so why do I have to jump through these hoops with the insurers too?

It is an anti-fraud measure to protect the insurer.  Its pretty standard. They don't know that the benefits agency is doing its job right or not. 

All of this just does not sit right with me. 

It sounds perfectly normal and within expectation for me.

I have pointed out that i have possible 6 more years work before retirement.  I do not just want to take any job but want a job that will serve me in all aspects during that time.

The PPI will typically only pay out for 12 months as a maximum with a handful going to 24.

Has anyone found themselves in the same position and what did you do.  

Pretty much everyone who claims that they would have done what is required.

Am I being stitched up or do I make looking like I am looking to take any job and make up a daily diary my new job for the next few months while signing on!!  

you are not being stitched up.

DullGreyGuy

Sounds fairly standard practice for ASU/PPI, they have no access to see what you are submitting to dole office, dont know if they are doing a good job or not etc and so perform their own checks to ensure you're actually seeking new employment and not decided that actually with the redundancy and another years salary at 75% that you can maybe retire early or go travelling or whatever. 

Whilst you genuinely may be looking for work, they ultimately arent going to just take your word for it. 

Grumpy_chap

Flof said:

I contacted them to say, surely, if I am receiving a monthly payment from you, the insurers, which is a reasonable amount of money.  I have to declare this to Jobseekers?  It does not seem right that I would still be signing on, still claiming housing benefit credit, If I have this money each month for the forseeable?  I had thought that I would then sign off and pay my dues such as council tax as is appropriate.  Also as I am signing on for Jobseekers, I see my advisor every two weeks and have to show them proof of looking for 3 jobs over the previous two weeks or my income could be stopped so why do I have to jump through these hoops with the insurers too?    They said the money I receive from them should not affect my benefits, that I should still sign on for the 6 months allowed and then get the proof 

What "6 months allowed" are the insurance company referring to?
Is that a reference to nJSA, for which entitlement is dependent upon your recent NI contributions history and the amount received is unaffected by other income / assets?

When you mention claiming housing benefit credit, is via a claim for UC?
UC will be affected by savings and by other income.  (I am unsure as to whether there is an exemption for PPI payments given the insurer has suggested there is no effect on other benefits).

The element of which benefits you are entitled to while also receiving the PPI payments may be better clarified on the Benefits board.  

Flof

Thank you everyone for your comments.  Doesn't feel so bad now knowing that is is all pretty standard, just wasn't what I was expecting but I will crack on and hopefully have the job of my dreams soon so can get on with life.   Thanks.