PHI/Long term income protection insurance claim, potential problem?

[Mblanc2000]

Hi,

I hope someone may be able to offer me some opinions/advice.

I have a long term income protection insurance policy with LV. The policy has been in place now for just over four years. No claims to date. Policy has a three month waiting eriod before it starts to pay in event of claim.


I am suffering health wise at the moment and I am in the process of undergoing a number of hospital tests and consultations; My GP thinks it's quite possible that I will be off work for a significant amount of time. I am self certifying at the moment, but work will want a sick note next week.


I have been employed by my current employer for less than two years. I am concerned that if I go off long term sick they will simply dismiss me (I believe any company can do this now within two years of commencing employment.)


The pesamist in me is worrying that if I put in a claim on the PHI policy, the employer dismisses me within the three month waiting period for the policy. Would my claim still be valid as own occupation, as I would no longer be employed? Does that make sense?


I am struggling to find anything out from the policy docs about the situation.


I am probably over analysing the situation, but advice would be great fully recieved.


Regards

[des8]

Re: PHI/Long term income protection insurance claim, potential problem?

Hi, & welcome
Sorry to hear about your health problems.

As there are several different types of income protection policies, and different levels could you possibly post up a copy of your policy (with all personal details redacted) so we can give you best help?
Thanks

[Mblanc2000]

Re: PHI/Long term income protection insurance claim, potential problem?

Thanks des8

The policy document is huge, but I'll have a bash at getting it uploaded if it'll help.

the policy is a long term income protection PHI policy with LV. It runs until age 65 and is index linked. There is a three month deferment period. It is on 'own occupation' definitions.

Its very unclear if they use my employment status at point of incapacity or point of claim, as the deciding factor. My worry is that my employer could technically get rid of me within the three month deferment period and the insurance company turn round and say I am now unemployed so not eligible to claim on the policy under 'own occupation' as I, in effect, would no longer have an occupation!

thanks again

[des8]

Re: PHI/Long term income protection insurance claim, potential problem?

Ok
On this page: http://www.lv.com/income-protection/...cy-information LV list various policy documents.
Can you indicate which, if any, is the policy you hold?

I actually suspect you're worrying too much, but I understand your concerns.

[Kati]

Re: PHI/Long term income protection insurance claim, potential problem?

Statutory Sick Pay (SSP) Employer Guide: https://www.gov.uk/employers-sick-pay/overview

I have no idea about PHI policies, but the above link might be of some use to you :tinysmile_grin_t:

[Mblanc2000]

Re: PHI/Long term income protection insurance claim, potential problem?

Ok
On this page: http://www.lv.com/income-protection/...cy-information LV list various policy documents.
Can you indicate which, if any, is the policy you hold?

I actually suspect you're worrying too much, but I understand your concerns.

Hi,

yes, I am definitely a worrier!

the policy I have is the first one on the list.

thanks again

[des8]

Re: PHI/Long term income protection insurance claim, potential problem?

Now cease worrying ..... it does't help:tinysmile_twink_t2:

Your policy should pay out if you become unable to work due to sickness or accident.
By that they mean your normal employment and aren't doing other paid work.
You can make a claim up to 12 months after being made unemployed
Payments won't start until you have been out of work for three months.
It will pay up to 55% of your normal pay (the amount will depend on any other payments you may receive, but does not take into account state sickness benefits).

I have only skimmed through the wording, but n the basis of what you have told us I anticipate no problems for you

good luck

[Mblanc2000]

Re: PHI/Long term income protection insurance claim, potential problem?

Now cease worrying ..... it does't help:tinysmile_twink_t2:

Your policy should pay out if you become unable to work due to sickness or accident.
By that they mean your normal employment and aren't doing other paid work.
You can make a claim up to 12 months after being made unemployed
Payments won't start until you have been out of work for three months.
It will pay up to 55% of your normal pay (the amount will depend on any other payments you may receive, but does not take into account state sickness benefits).

I have only skimmed through the wording, but n the basis of what you have told us I anticipate no problems for you

good luck

Thankyou so much! You have really helped put my mind at ease.

[Johnboy007]

Re: PHI/Long term income protection insurance claim, potential problem?

With regards to your company dismissing you because of your health problems.
In reality, if the company need to dismiss you because of your health, then they must first invite you to a meeting.
Here you can discuss your health issues, and also the prospects of a return to work.
You should also be able to discus a possible job change within the same company, if one exists.
The company must be able to show that they have done everything possible to negotiate and try to help with your problem.
This from the .gov.uk web site

You can be dismissed if you have a persistent or long-term illness that makes it impossible for you to do your job.
Before taking any action, your employer should:

• look for ways to support you - eg considering whether the job itself is making you sick and needs changing
• give you reasonable time to recover from your illness

If you have a disability (which may include long-term illness), your employer has a legal duty to support disability in the workplace.
Dismissal because of a disability may be unlawful discrimination.