Explaining the exclusions of an income protection insurance policy
- 8TH SEPTEMBER 2007
An income protection insurance policy could, when bought correctly, provide you with an income to replace your lost one if you come out of work due to suffering an accident, sickness or through involuntary redundancy. Applying online is quick and easy with a specialist and ethical payment protection provider such as British Insurance and is also the safest way to buy as they explain the exclusions of an income protection insurance policy in plain English.
Providing the income protection insurance policy meets your circumstances then after you have been out of work usually for 30 days or more it will begin to provide you with a tax free income to replace yours each month which means that you still have money with which to meet your essential monthly outgoings. A policy from British Insurance will pay out each month for up to 12 months which is usually more than enough time to get back on your feet and earning again.
The key facts of an income protection insurance policy are important and you have to read through them before buying a policy; however this has led to mis-selling due to the high street lenders lacking in giving out this information before buying.
The actual mis-selling of protection policies was highlighted in 2005 after a super complaint was made to the Office of Fair Trading by the Citizens’ Advice. Following this many fines were handed out by the Financial Services Authority and the sector referred to the Competition Commission, who expects to end their review in February 2009.
Some of the many exclusions within a policy typically include any pre-existing medical condition which causes you to come out of work and common illnesses and problems which keep you from work such as back problems. Also, if you are not in full time employment, you are not eligible to claim.
The lack of information such as this is what led to the wide spread mis-selling of protection policies and resulted in the fines. An income protection insurance policy can work the way it designed to, but it has to be understood and consumers must realise that there are exclusions and understand them. British Insurance does this and gives free honest advice to ensure that the consumer gets the best deal along with a quality product.
