Income protection

Discussion in 'Army Reserve' started by wellyhead, Aug 3, 2011.

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  1. Anyway, just happened to have a review of different insurance policies I had only to discover my income protection is null and void due to being in the TA, I'm not saying theres a clause in it that I'm not covered whilst on TA duty, simply I have no cover at all

    Anyone in similar situation? Know a plan that will cover me?
     
  2. Do you really need it though?
    Most policies have so much wriggle-room on the various clauses that it is often v hard to get a successful payout - You know the sort of thing: unless you took out the policy on a wet Wednesday whilst wearing odd socks, are under 5' tall and never inhale harmful substances such as fresh air, it will be deemed invalid.

    Seriously though, you may be better off just saving the premiums towards a financial cushion. Aim to try & build up a reserve of 3 months of current income if poss (give you time to sort the benefits out!).
     
  3. Income protection isn't worth the paper it's printed on. You'll never be able to claim on it
     
  4. The_Duke

    The_Duke LE Moderator

    Wellyhead, that would be pretty unusual.

    I would expect it to exclude accidents occuring whilst on active duty (ie deployment) but many include non-deployed reserve service. I could also see it excluding salary related to the TA as it is non guaranteed, and thus more difficult to prove loss of income.

    If you want to PM me the name of the income protection insurance plan I would be happy to run an eye over it for you.

    I have a fair bit of experience with this type of insurance.
     
  5. Reclaim the PPI + statutory interest.

    A lot of these were mis-sold to people who didn't qualify i.e self employed and as in your case in the TA.

    Complete the form from the fos website with a short covering note advising that you are of the belief that the insurance you were advised to take out was mis sold... the reasons you believe this is so will be on the fos claim form.

    how to complain - if you think you've been mis-sold PPI

    http://www.financial-ombudsman.org.uk/publications/factsheets/payment-protection-insurance.pdf
     
    • Like Like x 1
  6. Cheers guys, been away hence lack of response

    Just to clear this up, I'm self employed (well actually I'm a contractor with my own limited company) and the biggest fear I have is getting involved in an accident or such like and not earning, I try to keep a few months wages saved but I am being spanked by tax and dry spells of work. I would just like the piece of mind that if something happened I would be covered beyond the usual critical life cover

    Ref PPI, the whole reason I discovered this was because my bank called me in to review such plans.
     
  7. As I said you are able to reclaim all your payments + Statutory interest @ 8% which could be a fair bit of wedge. One case I know of received £24K.
     
  8. BiscuitsAB

    BiscuitsAB LE Moderator

    You see this is why you shouldn't take advice on ARRSE!
     
    • Like Like x 1
  9. The_Duke

    The_Duke LE Moderator

    sunami - income protection does not automatically equal PPI. They might look similar, but one (PPI) is designed specifically to protect payments for debt in the event of illness or unemployment. The other is a way to obtain payment in lieu of earnings to be spent however the insured person needs to.

    Wellyhead - this is where time spent with a specialist advisor (financial or insurance broker) will pay dividends. Explain your case to them and let them find a product that meets your needs. If you have no intention or expectation to deploy on operations then it should not be too hard to get someone to accept your TA actgivities. You need to get away from the call centre chickens and get to the people who have power to make decisions away from the rating manual. They will do this on your behalf, either for a fee or as commission from the insurer.
     
  10. I bought an income protection policy from Canada Life in 1998. When I was sick for a year in 2004 they refused to pay out on the basis that there was "evidence on your medical record that you were a smoker". I had actually declared that I had been a smoker and the bloke who sold me the policy said that it was irrelevant as I had stopped smoking more than 5 years before (a point that was mentioned in the policy small print).

    It was nearly two years and about 20 letters later that they suddenly refunded my monthly payments "in full and final settlement".

    Twats.
     
  11. Schaden

    Schaden LE Book Reviewer

    I have one with AXA covers up to 75% of my normal earnings - was a freaking god send for 6 months when I was made redundant last year. No mess no fuss - LOTS of paperwork and I had to sign on to Job Seekers to "prove" I was out of work and seeking work but paid out in full on time - can heartily recommend them.
     
  12. Waste of time; Income Protection is not PPI.

    @ WH - if the insurer knew you where TA, and is really does nuke the cover, they should not have accepted your premium in the first place.
     
  13. Porridge_gun

    Porridge_gun LE Good Egg (charities)

    Jesus, I'm agreeing with Bravo_Bravo.

    Drop BiscuitsAB a PM, not me though, I'm too handsome to help.
     
    • Like Like x 1
  14. WH has had a whole year to think about it.