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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be confused about income protection insurance

13 replies

Veryirritating · 01/12/2023 21:07

i have income protection insurance provided by my employer which apparently kicks in after 26 weeks of illness and then runs at 65% of full salary until normal retirement age.

Is it really as simple as that as it sounds too good to be true? I’ve been off for 5 months with mental health issues and I’m doubting that I will ever be capable of returning to work so do I just need to ask my psychiatrist to sign me off long term to get this insurance to pay out until I retire?

Does anyone understand how this works please?

OP posts:
Twistyripple · 01/12/2023 21:19

Is there anyone at work you can talk to about this??
Just thinking they may understand the policy.

Original poster
Veryirritating · 01/12/2023 21:22

Twistyripple · 01/12/2023 21:19

Is there anyone at work you can talk to about this??
Just thinking they may understand the policy.

Good point. I guess I need to contact HR to get the details of the policy

OP posts:
PinkTonic · 01/12/2023 21:34

You’ll need to check you meet the qualification criteria, but yes this is how it works. The insurance company will check in with you periodically to see whether you are fit to return to work.

Original poster
Veryirritating · 01/12/2023 22:06

PinkTonic · 01/12/2023 21:34

You’ll need to check you meet the qualification criteria, but yes this is how it works. The insurance company will check in with you periodically to see whether you are fit to return to work.

thanks for replying. It does seem too good to be true and definitely the best option for me. If I go back to work and then go off sick again then I would only get SSP

OP posts:
HundredMilesAnHour · 01/12/2023 22:11

The insurance company will want to contact your psychiatrist and any other doctors you have, and they will want semi-regular updates on your progress. Be aware that it can often take quite a few months to process a claim (although they will backdate payments if your claim is successful).

GRex · 01/12/2023 22:11

At a certain point the insurer or their reinsurer may intervene to assess you and help you get back to work. Presumably you will view feeling better as a good thing in that case.

SabbatWheel · 01/12/2023 22:12

DH had to claim on his policy after retiring on ill health due to a brain haemorrhage. He had to get a very thorough form filled in by his GP which included all the details of his condition as reported by his neuro consultant.

His payout reduces each year in line with how much his ill health pension goes up, so it’s not necessarily a guaranteed fixed amount. If you have other forms of income it may affect how much you get.

DH’s payout ends at his state pension age as was set when the policy was taken out (65) but he won’t actually get state pension until 67, so there are two years where he will be on less income.

SabbatWheel · 01/12/2023 22:13

They also need him to fill in a declaration each year that things have stayed the same and from time to time they require a confirmation form filled in by the GP.

Original poster
Veryirritating · 02/12/2023 02:23

SabbatWheel · 01/12/2023 22:13

They also need him to fill in a declaration each year that things have stayed the same and from time to time they require a confirmation form filled in by the GP.

Thanks @SabbatWheel, that is really helpful.

OP posts:
BarbaraofSeville · 02/12/2023 04:08

It's not too good to be true, it's just that very few people who buy the policy will meet the criteria for years/decades of payments. So they take a lot of money in to cover what they pay out.

It also puts a line in the sand for your employer where, if after 6 months of a person being off sick, they're likely able to terminate their employment without comeback, because the employee has an income and then they're free to replace them.

Because until that happens, they have work that still needs doing that will either have to be done by others, or go undone, because they have a post filled by someone who is unable to produce any work.

Original poster
Veryirritating · 02/12/2023 08:04

BarbaraofSeville · 02/12/2023 04:08

It's not too good to be true, it's just that very few people who buy the policy will meet the criteria for years/decades of payments. So they take a lot of money in to cover what they pay out.

It also puts a line in the sand for your employer where, if after 6 months of a person being off sick, they're likely able to terminate their employment without comeback, because the employee has an income and then they're free to replace them.

Because until that happens, they have work that still needs doing that will either have to be done by others, or go undone, because they have a post filled by someone who is unable to produce any work.

Thanks for clarifying.
From my perspective, as someone who has struggled to work through decades of poor mental health, it would be a great relief for it to just be recognised that it is not sustainable any more. I’ll get the details of the policy from HR and then ask my psychiatrist what he thinks about my long term prognosis.

OP posts:
KT8282 · 02/12/2023 08:23

You would not just have a few assessments now then get paid the rest of your life. The point of income protection is that it is paid when you are unable to work. For something like mental health, I would imagine you’d need regular assessments throughout your life to prove you are completely incapable of working. Also, is your IP on an own occupation basis? If it does not specify a specific job then it may not pay if the insurers believe you could work in a different job. You need to be very clear on the T&C. I have IP covering me specifically for being a vet because there are physical things that could stop me being a vet but not working in a less physically or stressful job, for example.

Original poster
Veryirritating · 02/12/2023 09:01

KT8282 · 02/12/2023 08:23

You would not just have a few assessments now then get paid the rest of your life. The point of income protection is that it is paid when you are unable to work. For something like mental health, I would imagine you’d need regular assessments throughout your life to prove you are completely incapable of working. Also, is your IP on an own occupation basis? If it does not specify a specific job then it may not pay if the insurers believe you could work in a different job. You need to be very clear on the T&C. I have IP covering me specifically for being a vet because there are physical things that could stop me being a vet but not working in a less physically or stressful job, for example.

Thanks @KT8282 The devil is in the detail as for all insurance. I need to get the policy details from HR as the first step.

OP posts:
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