I've been away for a while through many things and happenings. Anyway, I have a question relating to Income Protection.
For a few years I've had it with a company called The Exeter through a broker employed by Eunisure. I tried to claim early last year due to some arm injuries I had. Only then did I find out they base their payouts on your net income of the previous year. The broker did not tell me that (yes, I'm sure it's written in the policy, which I did not read, I took him at his word)
So I'm paying £47 per month which "covers me for £1,500 per month", with a 4 week waiting period before payments start. However, there are two things that really do not make sense to me about this policy:
1) I pay £47 per month no matter what, but if my net income for the previous year is less than £1,500 per month, they pay me that lower figure. (Why, if that is the case, am I not paying pro rata per month so my premiums correspond to the payout?)
2) My "net income" from their point of view is what I am left with after ALL business expenses. So it is after my monthly van tax, monthly RAC payments, in fact after all my van expenses. And after my monthly contractual advertising payments, and all other payments that cannot be paused. When I asked The Exeter about this, they told me if I am not working I should cancel all these payments. Really?!
Are all Income Protection plans like this? Can any of you recommend a policy that makes sense? I really don't want a policy as nonsensical as this (it almost seems illegal to me), but if they are all like this I'll have to be careful about the decision I make as it might be better than absolutely nothing.
Many thank yous.