I am struggling to understand something. My husband was until recently sole earner. We have income protection via my husband's employment. A couple of years ago, we took out a "top up" income protection policy. My husband became ill and we have claimed on these policies. We also receive state illness benefit. The income protection via my husband's employer is being paid but minus the state illness benefit. It seems that this is industry practice (according to broker). However it seems unfair given that we are nowhere near 75% of my husband's previous gross salary (we seem to have been underinsured that's a different story). Basically, the insurance company is cancelling out (taking) our state illness benefit.
And when we took out our own top up policy, the income to be insured was calculated and the state illness benefit deducted from that i.e. presuming we would be getting it. Why would that be assumed when as it turns out now, it's "industry practise" for it to be deducted when paying out?
And when we took out our own top up policy, the income to be insured was calculated and the state illness benefit deducted from that i.e. presuming we would be getting it. Why would that be assumed when as it turns out now, it's "industry practise" for it to be deducted when paying out?