Reply to: Claiming Benefits....

[Asterix]

Read the small print

Don't expect anything offered now to be as competitive as anything offered 5 years ago. As I said, I had a genuine claim and I got paid from Day 1 for loss of earnings. I'd say 1-3 months is sensible for long term ilnesses, I wouldn't think 12 months is worth it as you'd be probably starved/evicted/dead after such a long period of illness and resulting poverty. Better off with a critical illness that pays a lump sum upon anything serious happening. Then again, horses for courses as they say.

[AtW]

What you want is own occupation cover which is just what it says, if you can't do your job for any reason you qualify and you don't have to go back until you can do it again. This is damn expensive and hence the long run in period

So basically it (anything non-damn-expensive) is just another con?

[boredsenseless]

Mine kicks in after 3mnths. When I was shopping around for it I found that the shorter the time required before it started paying out the cost went up almost exponentially (sp?)

HTH

Yep I've got one that pays out after a year, it costs bugger all so we'd have to muddle through the year but then after that its fine.

They aren't there to provide a salary they are an insurance in case you can no longer work, the chances of someone being incapacitated for 3 months and unable to work are high i.e. a broken leg, can't drive to work etc. but for a year it has to be quite a serious event, that is really what they are designed for.

Also you have to be very careful what you take out. Some are cheap but only cover you if you can't work, i.e. could you stuff envelopes or answer chat line calls at home if so you won't qualify for a payout.

Some are slightly more expensive and will pay out so long as you can't do a role in the same industry, obviously this is bad if you are a technical architect and can no longer cope due to stress say, but you could be a data-entry clerk as they are on the same 'similar job' schedule.

What you want is own occupation cover which is just what it says, if you can't do your job for any reason you qualify and you don't have to go back until you can do it again. This is damn expensive and hence the long run in period

[ASB]

For Shim to get incapacity benefit, it is almost impossible now. You have (among other things, like form-filling/endless-queueing/means-testing) to also go through a medical test where a panel assesses your mobility. Forget it, I say.

I think incapactiy benefit is gone. It's now disability living allowance. It ain't the easiest thing in the world to claim. And it's not a lot either. Don't think it would suit shim though 'cos it's not intended for anything transient. However it is not means tested.

[Asterix]

Good point

That's another point - may need to prove that you can't do your work from home. As we are talking about IT, this may be harder to prove than eg driving a bus.
AtW, I agree that claims have gone up (and have become more outrageous)

[Pinto]

Can you not work at all, not even from home?

[AtW]

Ins. cos got greedier and greedier over the years - hence the present (almost prohibitive) costs.

And claimants got greedier and greedier.

[_V_]

Alternatively if you fall ill, sell one of your houses and live on the money made in the last few years.

HTH

[Ardesco]

I would guess also partly due to all the scivers out there that get the policy and claim straight away costing the ins company lots

[Asterix]

Moved the goalposts

Wasn't always like this, ie it didn't use to cost an arm and a leg to get decent insurance of any type. Ins. cos got greedier and greedier over the years - hence the present (almost prohibitive) costs. As I said, a few years ago, you could get cover from Day 1 which is what all s/e need, even if it is a short term illness. However, most of these schemes have been closed and the earliest you can get something now is after 30 days which is still a long time to wait and having to rely on your savings.

[Ardesco]

I always figured that if i saved the money and put it in stocks/shares/ISA/something I would make a lot more in the long term than the policy would pay, and I would also definetly get something out of it.

Of course i'm gambling that nothing bad will happen to me for a long time... (Mind the plus point is that the wife knows she won't get tulip if something does happen, so if something does go wrong I know she didn't instigate it )

[wendigo100]

I heard a rumour that you could claim, stating that you worked less than 16 hours a week on your business and did not draw income from it.

Like Ardesco, I got stuffed by the job centre when I tried to claim JSA four years ago. Although my company had no income, they said I was still in their employ as a director carrying out administrative work.

I got a job five days later, but I appealed on principle for the week I should have had. I told them where to stuff it when I was told I would have to miss a day's work and travel up to Leicester for the hearing.

[_V_]

How much does a policy cost and how much does it pay out and for how long?

I personally find these types of insurance a waste of money. The ones I've seen paid very little.

[Pondlife]

They aren't meant for the odd bout of flu or a broken arm, they cover long-term illness or disability.

I've got one that kicks in after one month, another after three. You can get various qualifying periods. I've never used either and hope I never have to, but it adds a little security.

Mine kicks in after 3mnths. When I was shopping around for it I found that the shorter the time required before it started paying out the cost went up almost exponentially (sp?)

HTH

[wendigo100]

Asterix, I don't know of anyone who would touch those insurance policies as the usual 90 day qualifiying period usually means you are back at work before you can make a claim.

They aren't meant for the odd bout of flu or a broken arm, they cover long-term illness or disability.

I've got one that kicks in after one month, another after three. You can get various qualifying periods. I've never used either and hope I never have to, but it adds a little security.