Life Income Protection Insurance

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kappar

Registered User
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Dear All,

I am currently covered up to 66% pay in case of illness by my employer's group scheme. Now I really like the comfort I have from having this in place.

My concern is that In 5 or so years time if I decide to move on an change jobs the premiums for cover for myself will have gone up or if I have an illness between now and then that will make me outside their risk profile and make cover unavailable to me.

I am interested to know what the options are (if any)
 
you are only covered by your employer's scheme whilst you remain an employee. If you leave tomorrow, then you're on your own!
 
I'm not sure if anybody in the industry would do this, but you could check if the provider would provide a continuance option? ie if upon leaving that employment, the provider will give you the chance to maintain the cover while you pay the premium. I'd say this is very rare.

I'd be interested if such continuance option really exist?

S.
 
Yes, it does exist but as you say Suzie, you have to check with the company scheme as not everyone offers it.

Back to the OP, income protection is benefit that has a maximum payout. The most cover you can have is 75% of income less State disability or any other income protection benefits. So if you took out cover today and went on a claim, they would only pay out 9% of salary on the second policy.

If you have an illness between now and taking out a new policy, unless it is very serious e.g. cancer, you will have the illness excluded from cover. Insurers will not cover existing illnesses.

Unless you have a continuation option under the terms of the group scheme, your options aren't great.

Steven
www.bluewaterfp.ie
 
SBarrett said:
Yes, it does exist but as you say Suzie, you have to check with the company scheme as not everyone offers it.

Back to the OP, income protection is benefit that has a maximum payout. The most cover you can have is 75% of income less State disability or any other income protection benefits. So if you took out cover today and went on a claim, they would only pay out 9% of salary on the second policy.

If you have an illness between now and taking out a new policy, unless it is very serious e.g. cancer, you will have the illness excluded from cover. Insurers will not cover existing illnesses.

Unless you have a continuation option under the terms of the group scheme, your options aren't great.

Steven
www.bluewaterfp.ie
Click to expand...

Thanks guys.

I will ask about a continuation option.

Now, something Steven says made me think, say I just stay with my current cover then, in a year I get skin cancer and am off work for a while. Then I return to work and move jobs without a continuance option, I apply for my own policy and of course skin cancer will be excluded, will all cancer be excluded? Will I be able to get cover at all?

What if I had a continuance option and got cancer again would that be covered a second time?

Thanks for all the help, you prob think I am being very pessimistic but I am just cautious and would rather be prepared and not look back and say "If I only looked into it more"
 
If you got cancer, you'd find it difficult to get cover. even if you did, it would be loaded and you'd have exclusions. They would probably exclude all cancers too (I'm not an underwriter and haven't had anyone making a claim for cancer).

The beauty of income protection plans is that the cover continues whilst out on a claim and you can claim off it multiple times.

Steven
www.bluewaterfp.ie
 
Kappar,

The problem with illness cover is that Medicine is saving too many lives!

Standard skin cancer is often not covered as it is eminently curable.

However if the skin cancer you get is Malignent Melanoma type , they will pay out because you have what is accepted as a very serious condition.

So too with what we construe as Heart Attacks , science can differeniate twix real Heart Attacks and the other Heartish type things.In other words you may think you had a provable Heart Attack but not get paid!

Anyone that has the older less excluding type policies. I think should hold them.
Everyone should check their policies to see are they covered as they believe they are.
 
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