[Perfect Windows]

For those of you that have income protection insurance, how much does it cost to cover for how much?

Any feelings or comments about any claim you've had to make would also be appreciated.

I'm trying to get a feel for whether it's proven worth it, both in terms of initial cost and ease of being paid out.

Vin

[tompoole]

Mines with legal and general
£32 per month
Pays £700 per month for 12months after 30days
Sickness ,accident or unemployment
Claimed for 3 months when made redundant no issues.
Also covers me being self employed , some don't so you'll
Need to check

[carl stanton]

I am with British friendly
that cost me £30 a month
the payout is £1000 if unable to work
only started it last year, never claimed

carl

[KS Cleaning]

For those of you that have income protection insurance, how much does it cost to cover for how much?

Any feelings or comments about any claim you've had to make would also be appreciated.

I'm trying to get a feel for whether it's proven worth it, both in terms of initial cost and ease of being paid out.

Vin

I will post about this next week when I get my payout from Exeter friendly. I was off for 8 days after staving 2 fingers and having a splint on.My policy is meant to pay out £825 per month,but I have a feeling due to me still earning through employees, they might try to baulk on paying out,will find out soon as I sent claim away on Thursday.

[Mike #1]

I am with UNUM i pay £22:00 a month the payments rise with inflation , I get a payout of 75% of my wage until i retire if i was injured that badly . Mike

[PoleKing]

We're not insured.
We have an 'arrangement' with some other lads round here where we will club together and get work done for each other if need be.
In the last 5 years I've had to help out 2 guys who couldn't work but not had to have it reciprocated yet. I am the youngest of us all though-perhaps that's got something to do with it.
It's all based on trust and we don't really make any money on it-just cover costs. Feel much safer with this is place though cause an insurance company will always look for a way not to pay as it's their job but we have gone out of our way to help each other and it's worked really well. Forged very strong relationships through it in fact.

[britishwill]

Excellent idea, its a sort of co operative!

I am looking into the income protection and if you cannot work but your staff can I believe they will not pay out so some types of protection are useless.

[traps7]

I am with UNUM i pay £22:00 a month the payments rise with inflation , I get a payout of 75% of my wage until i retire if i was injured that badly . Mike

I have a similar policy. No doubt it is 75% of what your last years books show though!

[Mike #1]

Yes think it is mate with which i have no problem as say say for instance if i had an accident tomorrow we could quite easily pay all our bills etc .

Not bragging or anything its just everything goes through the books and i make a decent wage so it would'nt be an issue . Mike

[KS Cleaning]

For those of you that have income protection insurance, how much does it cost to cover for how much?

Any feelings or comments about any claim you've had to make would also be appreciated.

I'm trying to get a feel for whether it's proven worth it, both in terms of initial cost and ease of being paid out.

Vin

I will post about this next week when I get my payout from Exeter friendly. I was off for 8 days after staving 2 fingers and having a splint on.My policy is meant to pay out £825 per month,but I have a feeling due to me still earning through employees, they might try to baulk on paying out,will find out soon as I sent claim away on Thursday.

UPDATE-Looks like I am not gonna get anything >:(main reason is that I have 3 employees so I still have money coming in.They have you everyway,if you keep your taxable profit down by buying a van/equipment for eg,this will also go against you.If I don't get anything it's off to the ombudsman to claim I was mis-sold the policy.

[KS Cleaning]

For those of you that have income protection insurance, how much does it cost to cover for how much?

Any feelings or comments about any claim you've had to make would also be appreciated.

I'm trying to get a feel for whether it's proven worth it, both in terms of initial cost and ease of being paid out.

Vin

I will post about this next week when I get my payout from Exeter friendly. I was off for 8 days after staving 2 fingers and having a splint on.My policy is meant to pay out £825 per month,but I have a feeling due to me still earning through employees, they might try to baulk on paying out,will find out soon as I sent claim away on Thursday.

UPDATE-Looks like I am not gonna get anything >:(main reason is that I have 3 employees so I still have money coming in.They have you everyway,if you keep your taxable profit down by buying a van/equipment for eg,this will also go against you.If I don't get anything it's off to the ombudsman to claim I was mis-sold the policy.

You might want to read through the following link:

http://forums.moneysavingexpert.com/forumdisplay.php?f=185

Thanks for the link Paul,I had a quick look but couldn't find anything that echos my case.Bottom line is,when I took policy out nearly 2 years ago I had 2 part time employees who would bring in lets say £300 per week,I would do £300 per week myself,so if I am unfit for work my loss of earnings is £300, I had cover for £825 per month to part cover the wage that I brought in,not what the 3 of us brought in.They are now saying that because I am still bringing in £300 per week through my employees, this is more than the £825 I am covered for. So it looks like I have been mis-sold the policy

[Mike #1]

Really sorry to hear you are not getting a payout .

But the one thing to bear in mind is your situation has changed massively you now  have 3 employees bringing in a healthy wage for you .

Imho you have unfortunately not informed your insurance company of any changes in your circumstances that is how  the insurance company will be viewing it .

              Sorry mate. Mike

[Small but perfectley formed]

What was your policy with Exeter friendly iam with them ?

[deeege]

I would hardly say his circumstances have "massively changed".

When he took the policy out ha had 2 employees earning him £300 per week.

Now he has 3 employees earning him (I assume) around £450 per week, not what I would call a massive change, especially when you take into consideration that he was paying for cover for £825.00 per week, a figure that he can only achieve with the profit from his employees factored in.

I would certainly look to take this claim further. To me it is a perfect example of being mis-sold a policy. It really winds me up when you buy insurance in good faith and they do their utmost to weasel out of paying you.

Good luck with this, keep us updated.

[Mike #1]

Deegee the point i was making was he had 2 part time employees at the time of taking out the policy i assumed that now he has 3 employees that they are working on a  full time basis and no doubt the earnings for the business have increased a fair amount in excess of say £15,000 per annum if not more .

Overall i was making an observation .

I do think that he should get a payout as he took out the policy in good faith and has paid into it for over 2yrs and expected that when he needed to claim he would be able to .

Just because he employees 3 people who are bringing in money for the business , does not mean that he may not need the money which should be paid to him in order for him to pay his bills etc . Mike

[deeege]

I agree m&m.

Going off his figures though I guess his increase in his own salary since he took the policy out to be £150 per week (an extra 1 employee where 2 employees are earning him £300 per week) therefore an increase of £7800.00 per year.

This is all based on economies of scale and anyway, is all irrelevant. If he took out the policy to be covered to £825 per week, that is what he should get, whether his current income (whilst being off sick himself) is £300 or £450.

In summary it's fair to say the insurance industry will search for any loophole to avoid paying out on a legitimate claim.

[KS Cleaning]

Really sorry to hear you are not getting a payout .

But the one thing to bear in mind is your situation has changed massively you now  have 3 employees bringing in a healthy wage for you .

Imho you have unfortunately not informed your insurance company of any changes in your circumstances that is how  the insurance company will be viewing it .

              Sorry mate. Mike

It was a cold caller who sold the policy,an independant advisor.I used to be with CICA and he had jumped ship from them and had all customers details,saying CICA had lost their license for their agents. Anyway I told him I didn't need cover as I employed and would therefore still be able to bring in a wage, even if I was unable to work,he told me I would still be losing money tho and this policy would cover my losses. Unsurprisingly the advisor who sold me the policy has since moved on again,but I await a phone call from the company he represented on Monday. Also the tax return I gave them was year ending April 2012 when I only had turnover from 2 part time employees plus myself, yet I have had to give them details of what I earned when off work=3 part time employees,so an unfair comparison.
To me if I am paying out £50 per month for this type of policy,I expect to be paid out the sum I am covered for which is £825 per month no questions asked.
Irrespective of the outcome I will be cancelling the policy and putting the £50 per month under my mattress,no forms to fill in or doctors lines to pay for should I be unfortunate enough to be off work in the future

[KS Cleaning]

What was your policy with Exeter friendly iam with them ?

Yes Exeter friendly=friendly when they are taking your premiums

[KS Cleaning]

I would hardly say his circumstances have "massively changed".

When he took the policy out ha had 2 employees earning him £300 per week.

Now he has 3 employees earning him (I assume) around £450 per week, not what I would call a massive change, especially when you take into consideration that he was paying for cover for £825.00 per week, a figure that he can only achieve with the profit from his employees factored in.

I would certainly look to take this claim further. To me it is a perfect example of being mis-sold a policy. It really winds me up when you buy insurance in good faith and they do their utmost to weasel out of paying you.

Good luck with this, keep us updated.

You are bang on with this Deeege,apart from the £850 is per month,not per week.Given that I pay in over £50 per month and was only off 8 days, I was expecting a payout of under £250,so if they don't pay out I will be trying to recover all premiums paid in which will be over £1000.............so not too fussed if they pay out as a would rather take my chances on recovering the premiums due to being mis-sold the policy.

[KS Cleaning]

Update.....As expected,Exeter Friendly will not pay out my claim.I have spoken to my accountant and he has advised me to contact the financial ombudsman as he believes I was mis-sold the policy by an independent financial advisor.
I would ask anyone with a similar policy to look into the finer points of their policies to make sure you will recieve the amount of money you are covered for in the event of illness/injury.Please note they will only pay out a percentage of your 'taxable income' and not your gross profit,so if like me you have maybe bought a van to reduce your tax liabilities this will affect any payout.Also if you perhaps took out a policy when you worked on your own and you now have an employee who will continue to bring in money while you are off,this will also affect any payout