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PHI through Employer
RiaAnn
Posts: 107 Forumite
I currently have a PHI policy costing me £38 a month and essentially the same potection through my employer for much less. Obviously attractive to cancel the expensive policy, but are there any disadvantages to having this insurance through an employer (as they could potentially just terminate my employment?)
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Comments
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Would be interested if anyone can help. Also neither policy cover for unempoyment is this standard for PHI or are there policy's out there that cover both. Thanks0
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PHI doesnt cover unemployment. Its a far better option than ASU plans. However, if unemployment does still concern you then you can get standalone unemployment only cover.
You need to find out if the insurance is transferrable to you if you leave the employer. Some are, some are not. Also, if the PHI is subsidised by the employer, it may be classed as a benefit in kind and have a tax liability.
The other thing is that there are generally three levels of cover for PHI. budget, standard and comprehensive. Make sure you are comparing like for like as the saving may be down to you having comp and the employer offering budget.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The main disadvntage of having it through your employer is that it will probably stop when you leave that employment.
It might be possible to assign a policy to you but my personal experience is that these are often group policies and it might not be possible.
The problem comes if you get a condition (particualrly a degenerative one) and then leave the employment.
You would then have to start a new PHI policy and almost certainly the now "existing" condition would be excluded.
It depends on how long you are likely to stay in your job but an advantage of having your own is that you can keep it long term and then you don't have an problems with having to start agiain and declare any exisitng conditions at the time.
Obviously you have to weigh this up against the cost savings.0 -
I am fairly sure I could not transfer the policy. Just read the terms and no mention of it.0
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If the insurer doesnt offer continuation terms on personal basis then you have to treat that as a risk.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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I agree with dunstonh.
Having said that I only have my company policy because it's free, so you need to weigh up the risk.0
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