Income Protection – Anyone have a positive outcome

lexip

I am self employed an considering taking out an Irish Life income protection policy whereby I would be paid a monthly income if I am unable to work for more than 13 weeks.

I have always thought this type of insurance was a waste of money but I do now know how I would cope if I lost my earnings, even for 6 months.

I have heard stories by people who have had bad experiences having their claim refused or their payments stopped, or taking over a year to process the claim by which time you are back at work.

Has anyone had a positive experience where their claim was dealt with efficiently and started receiving payments promptly after the 13 weeks period?

I know the particular circumstances of the medical condition can effect the claim, but any information would be useful in helping make a decision.

Equality

It is difficult to get these to pay out. In addition, they will charge you more as a self employed person, as they cannot reclaim any of the money from social welfare if you make a claim.

The simplest, cheapest insurance policy (and the one that always pays out) is obtained by working part time every week as an employee. This gets you the PAYE tax credit, but in addition it covers you for illness benefit (short term sickness like the flu or a broken leg) and invalidity pension (payable for life, if sufficiently sick).

A lot of self employed people that I am acquainted with hire each other as employees. This means they all get covered for short and long term illness, and the extra cost in terms of employers prsi is recouped by the fact that they get the PAYE tax credit. They work about two hours a week for each other.

Henry Ford III

Equality wrote: »

It is difficult to get these to pay out. In addition, they will charge you more as a self employed person, as they cannot reclaim any of the money from social welfare if you make a claim....

Nonsense.

I've seen many cases personally and professionally and every claim has been met. I know one PHI claimant whose claim has been paid for over 15 years.

Insurers will only charge for the sum assured. A self employed individual won't get social welfare in the event of disability so can insure a higher amount than an employee, who would.

OP there are more options than ILAC. Shop around.

lexip

Thanks for the advise re the part-time employment option, I had not heard of this as being an option.

I have not found that the premiums I am quoted are particularly high, it is just that I don't want the stress of being refused payment if I am ill. In which case it would be better to put the money in a savings account!

digzy

I'd seriously consider the 'savings account' option.
i used to have an income pretection a few years back. i used to go to the gp the day before the hols, complain of bachache, get the cert and off on the plane. the cheque would be back within 2 weeks-happy days. it was with an english crowd called dentist provident. however it turned out their premia weren't tax deductable so i pulled out of it.

Most of these products stipulate a period of 2-6 months before cover commences. brokers sell these on the tax relief but remember you've to pay tax on your benefit recieved too. I cant think of too many situations where a young guy/girl would be out for this amount of time unless you were in a car accident-in which case there's insurance, or development of a rare medical condition. i guess you're paying for pease of mind like all insurance.

there's no right or wrong here, we all have our opinions, but i'd rather have the cash in my pocket if i were you.

Pablo Sanchez

digzy wrote: »

I'd seriously consider the 'savings account' option.
i used to have an income pretection a few years back. i used to go to the gp the day before the hols, complain of bachache, get the cert and off on the plane. the cheque would be back within 2 weeks-happy days. it was with an english crowd called dentist provident. however it turned out their premia weren't tax deductable so i pulled out of it.

Most of these products stipulate a period of 2-6 months before cover commences. brokers sell these on the tax relief but remember you've to pay tax on your benefit recieved too. I cant think of too many situations where a young guy/girl would be out for this amount of time unless you were in a car accident-in which case there's insurance, or development of a rare medical condition. i guess you're paying for pease of mind like all insurance.

there's no right or wrong here, we all have our opinions, but i'd rather have the cash in my pocket if i were you.

The average claim period is something like 5 years, it would take some amount of savings to build up a lump sum like that.

As for the insurance fraud......no comment.

Kristopherus

digzy wrote: »

I'd seriously consider the 'savings account' option.
i used to have an income pretection a few years back. i used to go to the gp the day before the hols, complain of bachache, get the cert and off on the plane. the cheque would be back within 2 weeks-happy days. it was with an english crowd called dentist provident. however it turned out their premia weren't tax deductable so i pulled out of it.

Most of these products stipulate a period of 2-6 months before cover commences. brokers sell these on the tax relief but remember you've to pay tax on your benefit recieved too. I cant think of too many situations where a young guy/girl would be out for this amount of time unless you were in a car accident-in which case there's insurance, or development of a rare medical condition. i guess you're paying for pease of mind like all insurance.

there's no right or wrong here, we all have our opinions, but i'd rather have the cash in my pocket if i were you.

Fraud:mad:

Legislator

I would avoid income protection policy with Irish Life for the following reason. My wife has been out of work for the past 10 months suffering from depression and anxiety. During this perios she was hospitalised for 16 weeks and is still attending as an out-patient. The company she works for has an income protection policy with Irish Life and they requested that my wife attend a meeting with their doctor to assess whether she was fit to work or not. My wife attended the meeting with a and after one hour the Irish Life doctor declared her fit for work and rejected her claim. . This was despite a report from her consultant physiciatrist saying that she was only in the early stages or recovery and definitely not fit for work.
The policy is a complete joke. I am sorely tempted to write to Joe Duffy.

digzy

Pablo Sanchez wrote: »

The average claim period is something like 5 years, it would take some amount of savings to build up a lump sum like that.

As for the insurance fraud......no comment.

would it be fair to say that like all insurance, the premia of the non-claimers pay the benefits paid to the claimants? would love to see data of the age categories of claimants and duration of illness.

as regards the 'fraud' i'll try not have any sleepless nights over it:rolleyes: I know it was wrong,I dont need any ethical instruction from brokers

Henry Ford III

Legislator wrote: »

I would avoid income protection policy with Irish Life for the following reason. My wife has been out of work for the past 10 months suffering from depression and anxiety. During this perios she was hospitalised for 16 weeks and is still attending as an out-patient. The company she works for has an income protection policy with Irish Life and they requested that my wife attend a meeting with their doctor to assess whether she was fit to work or not. My wife attended the meeting with a and after one hour the Irish Life doctor declared her fit for work and rejected her claim. . This was despite a report from her consultant physiciatrist saying that she was only in the early stages or recovery and definitely not fit for work.
The policy is a complete joke. I am sorely tempted to write to Joe Duffy.

Appeal it, and also contact the Insurance Ombudsman.

p.s. Some PHI policies have a hospitalisation benefit - not underwritten and payable after 1 week.

Henry Ford III

digzy wrote: »

I'd seriously consider the 'savings account' option.
i used to have an income pretection a few years back. i used to go to the gp the day before the hols, complain of bachache, get the cert and off on the plane. the cheque would be back within 2 weeks-happy days. it was with an english crowd called dentist provident. however it turned out their premia weren't tax deductable so i pulled out of it.

Most of these products stipulate a period of 2-6 months before cover commences. brokers sell these on the tax relief but remember you've to pay tax on your benefit recieved too. I cant think of too many situations where a young guy/girl would be out for this amount of time unless you were in a car accident-in which case there's insurance, or development of a rare medical condition. i guess you're paying for pease of mind like all insurance.

there's no right or wrong here, we all have our opinions, but i'd rather have the cash in my pocket if i were you.

All approved PHI policies qualify for tax relief, so it seems you bought a pup.

Minimum deferred period is 13 weeks, and to lower premiums can be as long as 52 weeks.

Paying income tax on the benefits themselves really shouldn't be an issue as the claim in payment is merely replacing income which itself would have been taxable.

Most long term claims relate to chronic conditions such as severe back issues, or perhaps depression. There are plenty of others.

Some good info. here