Income Protection insurance question

[MrHat]

Hi, a friend of mine took out an income protection policy last april. It pays out about 1k per month for up to 12 months in the event of sickness or loss of employment.

 

Since then he has been diagnosed with cancer.

 

He will need to take time off for chemotherapy.

 

In the policy it states the below. The policy ends in april. Does this mean that the policy will pay out for up to 12 months if he claims today or will payments stop in April? (The policy end date)

 

“Monthly benefit will be paid until:

 

• The date when your Doctor or

 

Consultant advises that you are no

 

longer unfit for work as a result of the

 

accident or sickness which prevented

 

you from working at the start of your

 

claim; or

 

• The date when you do not supply us with proof that you are unfit for work as a

 

result of accident or sickness; or

 

• The date when you return to work; or

 

• The date when we have paid 365 days

 

of benefit for a single claim under this

 

section; or

 

• The policy end date.”

[MrHat]

Giving this a bunp to see if anyone is about.

 

Seems strange to me that income protection policy would onky pay til end of policy as the only way to get 12 months is to claim on day one

[unclebulgaria67]

Giving this a bunp to see if anyone is about.

 

Seems strange to me that income protection policy would onky pay til end of policy as the only way to get 12 months is to claim on day one

 

I suspect that if the policyholder wants a claim payout to continue beyond the current end date in April, that they would have to renew the policy. Although it is a 12 month policy, it can be renewed.

 

These type of policies work differently to standard Insurances. If you claimed on say Home Insurance, the date that is relevant is the date of loss. With this type of income prtoection policy, the health condition causing the loss is an ongoing issue, so the only way to continue receiving payment is to continue the policy and meet the terms of the policy regarding notification of Doctors reports into their ongoing treatment and inability to work.

[MrHat]

Thanks so much uncleb.

 

Do he could start claim now and renew the policy? Would the premium go up or be on same terms do you think?

 

The policy states that he must notify them of change of address, employment status etc but does not mention anything medical

[unclebulgaria67]

Thanks so much uncleb.

 

Do he could start claim now and renew the policy? Would the premium go up or be on same terms do you think?

 

The policy states that he must notify them of change of address, employment status etc but does not mention anything medical

 

It is VERY important to fully comply with the policy terms in regard to notification of any claimable issue. There might be a condition about the time period by which Insurers must be notified.

 

Get the claim in first, as it will take time. The renewal is a separate issue and they will receive details in due course. Whether they pick up the claim and increase premiums because of it, i cannot answer.

[MrHat]

Thanks again