Being the paranoid type, single with a mortgage, and working in company who are constantly letting folks go I took the decision last year to take out income insurance. Basically if I’m made redundant I get half my salary for roughly a year, which would tide me over nicely.

Anyway, having read the small print in a bit more detail, it says I need to be able to prove I have been actively seeking work to claim. Now if the worse did happen thats exactly what I’d be doing, but would it be reasonable for me to be looking in my own field and for a role with a similar salary, or am I just expected to take any job out there?

Anyone had any experience of how it works and care to share as I know insurers are notorious for trying to worm their way out of paying up?

ta

Depends on policy but in my expeirance its Any job

My dad had a heart attack – 3 actually in as many weeks

His insurance refused to pay out as although he was unable to do his old job due to the stress he could take another job , even if the salary was less. Propper con.

Each company is different, the more expensive policies will let you keep within your salary range, the cheaper ones will expect you to take on any work. Ring the company & ask.

the income insurance i had felt that having a heart operation didnt count as a valid reason not to be at work and refused to pay out for the 14 weeks i was off. they said that as i had rheumatic fever as a kid it was a resonable expectation that 32 years later i’d be under the knife.. they refunded me all the premiums eventually as a gesture of goodwill..

If you took it out last year, thats probably got over the first hurdle of no claims within three months of the start of the policy.

I claimed on mine and it was very helpful. I insured to a sum of £1200 pcm and a max of 12 months claiming. The reality is that attendance at the job centre was mandatory every 2 weeks for paperwork to submit each month to the insurance claim office. I also had to submit evidence of job searches, letters of application, interview appointments too.

Its not an easy ride of insuring for a year then actually taking a career break. The pressure for evidence ramps up each month. I think mine wanted 6 application letters and evidence and that was ramping up each month too. I guess the insurance office want you off their books asap.

Overall, it was worth it. I took out more than the sum of the premium. Consider checking to see if you can still pay the premium whilst claiming as I could have a subsequent claim after a period of 6 months too.

Hope this helps. It was a piece of mind for the mortgage when I was made redundant after 13 yrs service with the satutory minimum of £5.5k and having to work my notice…

HTH

Thanks Rick, can you tell me which company you insured with? To be honest there aint that many jobs out there for people with my exp, so Six applications a month may be pushing it.

Also some shocking stories – totalshell, what a bunch of ***nts.

I think I will call them tomorrow and ask for absolute clarity of what they would require. I can’t remember it being in the small print, as usual they gloss it over with ‘expect evidence of job search’…or something equally wooly.