Individual income protection plan

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KPJ_0771
KPJ_0771 Posts: 6 Forumite
in Reclaim PPI & other insurance
been advised by my insurer that the policy expires when i'm 60 and not retirement age, i depend on the monthly payments for daily living expenses , the insurer did not at any time tell me the date of the expiry and therefore left me in a financial nightmare.
I would have thought income protection would pay until retirement age, nobody would agree to a policy that left you 4 years short when you need it most.
can any one advise

keith

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  • Bermonia
    Bermonia Posts: 977 Forumite
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    It pays out whatever was agreed and as stipulated in the t&cs - if you have evidence to the contrary then you have complaint.
  • Nearlyold
    Nearlyold Posts: 2,289 Forumite
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    edited 19 February 2019 at 6:01PM
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    KPJ_0771 wrote: »
    been advised by my insurer that the policy expires when i'm 60 and not retirement age, i depend on the monthly payments for daily living expenses , the insurer did not at any time tell me the date of the expiry and therefore left me in a financial nightmare.
    I would have thought income protection would pay until retirement age, nobody would agree to a policy that left you 4 years short when you need it most.
    can any one advise

    keith


    At the very least the expiry date would be in your policy documents. How did you purchase the policy, direct or through an adviser? An expiry age of 65 would have attracted a higher premium, and with some occupations might not have been available.
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    Answer on the basis of it being income protection (PHI version)
    been advised by my insurer that the policy expires when i'm 60 and not retirement age,

    Not uncommon. The longer you have it, the more expesnive it becomes. You get to choose when you want it to end and most insurers will accept somewhere between 50-70.
    the insurer did not at any time tell me the date of the expiry and therefore left me in a financial nightmare.

    That is incorrect. You choose the age at the outset and it appears on the quote given.

    Answer on the basis of it being payment protection (PPI version - the rubbish version)

    These all have a set age. It is in their policy terms. These plans are not proper income protection and only pay out for 12-24 months.
    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.
  • societys_child
    societys_child Posts: 7,110 Forumite
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    KPJ_0771 wrote: »
    , i depend on the monthly payments for daily living expenses
    So the plan is already paying out? Have you reached 60?
  • KPJ_0771
    KPJ_0771 Posts: 6 Forumite
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    Will be 60 soon, i have received no correspondence from insurer stating policy coming to an end.
    problem i have no access to original policy as it was 40 years ago, insurer says documents did not scan clearly into their systems and cannot name financial advisor, I however do not remember any financial advisor,
    if they say cannot read original policy, how do they justify expiry date, their own web page states, "policy pays a percentage of salary until either they return to work or reach state pension age"
  • cattie
    cattie Posts: 8,841 Forumite
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    My own income protection plan ended at 60 & when your policy was taken out 60 probably was the pensionable age seeing as it was taken out some considerable time ago. Just as it was with mine & they would surely be the terms that you signed up for.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • KPJ_0771
    KPJ_0771 Posts: 6 Forumite
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    THANKS FOR THE REPLY
    its not what i want to hear , but i'm a realist, however it still seems to me i would have wanted it or least expected it to cover me until state pension kick in.
    I wonder whether I might have miss sold claim??
  • Bermonia
    Bermonia Posts: 977 Forumite
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    Miss sold would mean a refund of any premiums paid - however if you have and are currently claiming then amount you have claimed would be deducted from any redress.

    Given that you have clearly benefited financially from this policy I do not see how a mis sale complaint would be reasonable - as said even if it were uphold they would likely owe you nothing (technically you would probably owe them, however they are unlikely to chase you for their money for all the claims you’ve made)
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    I wonder whether I might have miss sold claim??

    No you dont. 40 years ago was before regulation.

    Plus, 60 was a common age for selection 40 years ago.
    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.
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