Incapacity / Unemployment policy - any recommendations? ?

[lewes]

Sadly I'm not a company director so please forgive me!!!

I am in normal employment but have no significant savings to fall back on in the event of long - term ill health or unemployment.

Can anyone recommend a suitable policy or are they mainly expensive policies which rarely pay out???

[Sir Bagalot]

It's usually called Mortgage protection insurance.

Google is your friend.

I made a successful claim but only after an over complicated claim form was submitted, initially refused as it transpired they also wanted my right testicle I had to get strong with them and basically told them if they didn't pay out I would go legal.

Also were sneaky as randomly they would call me at home to check I was still actively looking for work. Always always always on my landline and never on my mobile. s. One such call was on the first day of a 2 week holiday abroad. When I didn't return the call within a day they esculated the call to HQ

Policy was with Aviva through a third party

[Jasandjules]

Think they mainly take premiums then have a large excuses department to avoid paying out.

[TwigtheWonderkid]

Jasandjules said:

Think they mainly take premiums then have a large excuses department to avoid paying out.

Rubbish. I know someone who had critical illness cover, and got paid out £280K without any real fuss when disaster struck.

Like all policies, they have Ts & Cs and exclusions, but if the event you've insured against is covered and you were honest when taking out the policy, there's no problem.

[Sarnie]

TwigtheWonderkid said:

Rubbish. I know someone who had critical illness cover, and got paid out £280K without any real fuss when disaster struck.

Like all policies, they have Ts & Cs and exclusions, but if the event you've insured against is covered and you were honest when taking out the policy, there's no problem.

^This.

Contrary to popular belief, insurance companies LIKE to pay out and often will publish stats on how many cases they've paid out on. We had a case recently where the insurance company paid out where strictly speaking, they didn't need to, but they actually tried their hardest to pay out........

It's worth noting that by far, the biggest reason for any company not paying out, is non-disclosure.......

[Jasandjules]

TwigtheWonderkid said:

Rubbish. I know someone who had critical illness cover, and got paid out £280K without any real fuss when disaster struck.

I know several people who have met the excuses department. I also know people involved in the litigation to get the money from them.

[Jockman]

Sarnie said:

^This.

Contrary to popular belief, insurance companies LIKE to pay out and often will publish stats on how many cases they've paid out on. We had a case recently where the insurance company paid out where strictly speaking, they didn't need to, but they actually tried their hardest to pay out........

It's worth noting that by far, the biggest reason for any company not paying out, is non-disclosure.......

Disagree Sarnie.

I appreciate you may sell these policies but like any insurance they are massively loaded in favour of the insurer. That is how they stay in business.

Many who take out these policies breache non-disclosure I would venture - mostly by accident - but it is then open to the Insurer to decide whether or not this was a material fact.

I do have a lot of sympathy for insurers as they are getting hammered by a piss poor legal system that is forever concocting scams to attack them with.

[TwigtheWonderkid]

Jockman said:

Sarnie said:

^This.

Contrary to popular belief, insurance companies LIKE to pay out and often will publish stats on how many cases they've paid out on. We had a case recently where the insurance company paid out where strictly speaking, they didn't need to, but they actually tried their hardest to pay out........

It's worth noting that by far, the biggest reason for any company not paying out, is non-disclosure.......

Disagree Sarnie.

I appreciate you may sell these policies but like any insurance they are massively loaded in favour of the insurer. That is how they stay in business.

No one is denying that. Of course they have to get in more than they pay out. They are a business. But what's been said is that insurers actively look to throw out claims, and have a department for this. That's bks. But of course they scrutinise claims and refuse to pay where the incident isn't covered or where they haven't been charging the incorrect premium due to policyholder non disclosure. And as an honest policyholder who tells the truth and pays the correct premium, I'm damn glad they do.

[Sarnie]

TwigtheWonderkid said:

No one is denying that. Of course they have to get in more than they pay out. They are a business. But what's been said is that insurers actively look to throw out claims, and have a department for this. That's bks. But of course they scrutinise claims and refuse to pay where the incident isn't covered or where they haven't been charging the incorrect premium due to policyholder non disclosure. And as an honest policyholder who tells the truth and pays the correct premium, I'm damn glad they do.

Indeed.

We had a claim on a Critical Illness policy 12 months ago. The applicant said that they didn't work Offshore, but he did but not very often, so didn't think it was worth mentioning. Perfect opportunity for the insurance company to decline the claim. But instead they said they they would have loaded the premium if they'd known he worked Offshore, so they just worked out how much extra per month would have been charged over the months he'd had the policy, came to a total and deducted it from the £330,000 sum assured and paid him out. Client was ecstatic after assuming they weren't going to pay and was able to relax whilst recovering from a Heart Attack.

This examples never make the press, just the people moaning that they never got paid out for something that is explicitly not covered by their policy or because they said they don't smoke when they do because "I only have a few when I'm out having a few beers so I class myself as a non-smoker"

[TwigtheWonderkid]

Sarnie said:

TwigtheWonderkid said:

No one is denying that. Of course they have to get in more than they pay out. They are a business. But what's been said is that insurers actively look to throw out claims, and have a department for this. That's bks. But of course they scrutinise claims and refuse to pay where the incident isn't covered or where they haven't been charging the incorrect premium due to policyholder non disclosure. And as an honest policyholder who tells the truth and pays the correct premium, I'm damn glad they do.

Indeed.

We had a claim on a Critical Illness policy 12 months ago. The applicant said that they didn't work Offshore, but he did but not very often, so didn't think it was worth mentioning. Perfect opportunity for the insurance company to decline the claim. But instead they said they they would have loaded the premium if they'd known he worked Offshore, so they just worked out how much extra per month would have been charged over the months he'd had the policy, came to a total and deducted it from the £330,000 sum assured and paid him out. Client was ecstatic after assuming they weren't going to pay and was able to relax whilst recovering from a Heart Attack.

This examples never make the press, just the people moaning that they never got paid out for something that is explicitly not covered by their policy or because they said they don't smoke when they do because "I only have a few when I'm out having a few beers so I class myself as a non-smoker"

That really annoys me. If he hadn't claimed, no one would have found out he worked offshore so he would have gone years without paying the correct amount into the pot. Thus increasing premiums for all. Shame they paid the claim, I would have told him to sling his hook.

[Jockman]

Sarnie said:

This examples never make the press, just the people moaning that they never got paid out for something that is explicitly not covered by their policy or because they said they don't smoke when they do because "I only have a few when I'm out having a few beers so I class myself as a non-smoker"

Yup I have a son in law doing exactly this. He drops dead tomorrow albeit unlikely then a quick swab in the mouth renders his life cover void and my daughter is left with a £200k mortgage she can't afford on her own!!! Ridiculous. For an extra fiver a month!!

Life cover is so cheap and is one insurance I would never be without. My issue is with critical illness and income protection policies. Poor value for money and far too many exclusions that render them useless in most cases.

My other daughter is currently organising her first mortgage and I've advised her to avoid both but take life cover as she is pregnant.