subject: If You Are Going To Move To Another Country It Might Be An Idea To Get Family Health Insurance [print this page] Perhaps with this in mind, the Protection Review and Income Protection Task Force (IPTF) have attempted to assist consumers by producing a list of the top ten things to be aware of when purchasing income protection (IP).
IPTF hope that in addition to clarifying consumer needs in relation to IP, the new list will increase awareness of the importance of having an adequate income protection policy in place. Roy McLough, a senior partner at Master Adviser and a member of the IPTF, has emphasised this importance by citing the fact that an IP claim is statistically more likely to occur than a claim for either life or critical illness. He also adds: "few people realise that IP insurers are more generous than the State, and pay a much higher percentage of the claims they get too."
The full list of things for potential IP consumers to consider is:
1. There is no set list of illnesses, so make sure you understand the definition used for being unable to work, such as 'unable to carry out your own occupation,' which is better for consumers than other alternatives such as 'work tasks.'
William Russell's Global Income plan defines it as being "totally unable to return to work at your own occupation."
2. Check what benefits you are already entitled to from your employer or the State (if unsure ask your employer, ask an IFA or check online)
3. Ensure premiums are competitive on a like-for-like basis by shopping around and speaking to an independent adviser.
4. Make sure you know if the premiums are guaranteed throughout the policy, linked to age or inflation, or reviewable.
William Russell's premiums are age-related.
5. Check how long the policy will pay out for long term IP pays until retirement, however shorter 'budget' plan options are also available which reduce the premiums and may provide cover over a realistic time period over which you might suffer financially if unable to work.
William Russell's cover can be renewed annually right up until you reach the age of 65.
6. Choose a suitable amount of cover (at least enough to cover essential expenses) and take cover until a realistic retirement age.
William Russell allow you to insure up to 75% of your gross annual earnings up to a maximum of 90,000.
7. Ask about the insurer's track record for paying claims not all providers publish this information but a growing number do.
William Russell are pleased to report that as it currently stands, we have paid in excess of 90% of IP claims submitted.
8. Choose a suitable 'deferment period' this is how long you need to be unable to work before the claim is paid.
William Russell offer a 3 month deferment period, but if you believe you could cope financially for up to 6 months, then choosing a 6 month deferment period will reduce your premium.
9. Check what practical help you might receive in the event of claim such as counselling and rehabilitation options, which can help you to become employable again after a long absence. William Russell offer a rehabilitation benefit, which would be paid if you recovered sufficiently within a 24 month period to return to work part-time.
10. Make sure you disclose all health issues when applying if in doubt, write it down.
Income Protection is certainly well worth considering, especially for expatriates, as it offers a reassuring level of financial security should you suffer the misfortune of illness or injury. The above list represents a hugely useful tool, so if it has encouraged you to contemplate Income Protection, do bear it in mind. You can read more about William Russell's international Global Income Protection plan by clicking here.
Additionally, at William Russell we are dedicated to offering a consistently straightforward, user-friendly service. We understand, as the ABI consumer survey mentioned earlier suggests, that protection insurance can be confusing, but our commitment to customer care is such that all our staff undertake extensive training with regard to Treating Customers Fairly, which places a significant emphasis on the need to utilise Plain English and avoid over-complex industry jargon. Indeed, our mission statement reinforces our pledge to provide transparency and clarity with our documentation and correspondence.
by: A Turner
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