Can I Claim Employment and Support Allowance As Well As Income Protection?
Question asked by Nina Bell
I earn £26,000 gross income per annum with up to £5,000 (non-guaranteed) bonuses per annum. I work for a large company that provide 6 months of full sick pay then 6 months of half pay.
I was advised in 2017 to take Income Protection for £800 pm with a 6 month deferred period and an PPI policy for unemployment for £753 pm. A year later another I was advised to take another Accident & Sickness policy giving £794 per month.
My income at this time was also £26,000. I need to know where I stand and what to do about the polices, because I have a large shortfall in Mortgage Life and Critical Illness and no cover over and above this, and this money could be used on these needs as I am married with two young children.
I think your current cover needs to be reviewed properly as there is the potential to be over-insured. Different insurers have different limits as to how much you are able to cover, which ranges from 50% to 70% of gross earnings.
I think it would be best to run through properly with an adviser. The adviser would need to know which insurer(s) you are currently with so they can calculate the maximum you could cover.
As you have 6 months of full sick pay and 6 months of half pay, the adviser would also need to calculate how much can be covered under the first policy, which again would depend on the insurer’s income limit.
This is because you’d still be receiving an income for a year, even if it is a reduced income, from your employer.
Please feel free to call us to run through with an adviser – we’re available on 02084327333.