income protection

tammy 22

hi all,in january of this year i was diagnosed with an illness which left me unable to work for the forseeable future.I was paid by my company for 6mths after which the companys income protection scheme should have commenced.IT is a core benifit which is fully subsidised by the company.So far they still have not made a decision nearly 6mts later.Today i was informed by letter that the company was making me redundant which was not a shock as it is closing in march anyway.My question is,am i entitled to recieve income protection until i am let go?is my claim still valid even though i will be redundant in 2 weeks?i have been with the company 10yrs and have never used the group income protection scheme,any advice would be much appreciated...

Henry Ford III

Nasty situation OP and you have my sympathies.

I'd document everything and write to the employer and insurer asking why the claim hasn't been paid, and when you might expect to have a decision. Ask about their complaints procedure.

I'd mention that you reserve your right to refer the matter to the Insurance Ombudsman if it isn't resolved in a timely manner.

p.s. No I.P. premiums are payable during a claim, so it's possible that your claim if successful might continue be paid even after your redundancy.

Lawdie

Henry Ford III wrote: »

p.s. No I.P. premiums are payable during a claim, so it's possible that your claim if successful might continue be paid even after your redundancy.

Horrible position, my sympathies, but I agree with the above. Most income protection polices have waiver of premium, meaning they cover the cost of the policy while there paying out.

Depending on you position it might be worth approaching a "independent" financial planner (CFP qualified is a decent standard) with your policy documents and terms/conditions paying for some good advice.

Some plans actually cover you while your unemployed, for a term ie 1 year.

I would be also concerned as to why the case is so long in arbitration. Push the underwriting company to make a decision. Put everything in writing, if you feel unjustly delayed inform them of them you will take the next step and write to the Ombudsman.

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/insurance/insurance.html

Best of luck.

skippy2

I am currently in receipt of PHI Benefit due to illness as part of a Company pension scheme so not sure if your is the same and it may need to be checked but as far as i am aware (document everything in writing/email.) If youre claim is accepted it should be backdated to when the claim is made and is payable as long as you re sick even if the company is gone. Remember this is a claim with an insurance company through your employer. Get as much done as possible before you're company folds. My case took over a year to be finalized with the insurance company before being accepted and backdated. I also checked re if my company were to close and was told payment would continue in this event but direct to me and not through the company. Make an official compaint to both employer and insurance company about the delay in dealing with your case and make sure you have all your medical records to hand. Best of luck. Its a long and frustrating process unfortunately

MikeOmega

Hi Tammy,
Sorry to hear about your situation and to hear about your job situation too.
As a person who works in Financial Services I would suggest that you log everything as everyone above has suggested and also book an appointment with a solicitor as that way you will find out exactly where you stand legally. That is the most important part for you. In some situation you can opt to take over the premiums from your company in order to continue to receive the benefits. The first steps would be to get the policy documents together and either sit down with an Independent Broker (they deal with 5 or more Insurance companies) not a Tied Agent (tied to one company) and go through the policy. Then speak to a solicitor. You are better off having professional advice that is specific to you.

I hope this helps in some way.