That's common enough as far as I know.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).
You mean he was earning X and you were insured for Y and X > Y? Why was that?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).
Do you mean that your claiming on two separate policies and, in each case, the illness benefit amount is deducted?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.
Have you checked the policy contracts' terms and conditions wording? That should give you all the details that you need and which were agreed to at the outset.Why would that be assumed when as it turns out now, it's "industry practise" for it to be deducted when paying out?
Various . . his salary went up in the meantime and the balance between basic pay and bonuses changed . . . .turned out the company income protection covered 66% of base salary not total renumeration. Oversight by us . . But that's just the way it happened, I only bring it up to point out that we're not approaching the 75% limit.You mean he was earning X and you were insured for Y and X > Y? Why was that?<
Do you mean that your claiming on two separate policies and, in each case, the illness benefit amount is deducted?
Have you checked the policy contracts' terms and conditions wording? That should give you all the details that you need and which were agreed to at the outset
Interest%I looked into his myself.
You can insure 75% of your salary.
The amount the insurance company pay out is as follows.
Husbands salary = 100k
Max Insured amount allowed is 75% of 100k= €75k p/a
State ilness benefit = €10,816 p/a
Company sick pay?? = lets say 30k p/a
Amount of income protection paid out =
75k - (10,816 + 30,000) = €34,814 p/a
Do did they deduct illness benefit twice.Interest%
Yes seems straightward except you're missing one bit. . . ..below in bold . .which has only just become apparent to us having claimed
You can insure 75% of your salary.
The amount the insurance company pay out is as follows.
Husbands salary = 100k
Max Insured amount allowed is 75% of 100k= €75k p/a
State ilness benefit = €10,816 p/a
Company sick pay?? = lets say 30k p/a
Amount of income insured
75k - (10,816 + 30,000) = €34,814 p/a
Amount of income protection paid out =
€34,814 p/a - 10,816 = E23,998
So you see. You thought you'd be getting €34,814 p/a but you won't, you'd be getting E23,998 after the insurance company deducts state illness benefit from your payout.
The amount received in the example provided is made up of three component parts totalling 75%, which is the maximum amount allowable to be paid out from all sources including any state benefits.Interest%
Yes seems straightward except you're missing one bit. . . ..below in bold . .which has only just become apparent to us having claimed
You can insure 75% of your salary.
The amount the insurance company pay out is as follows.
Husbands salary = 100k
Max Insured amount allowed is 75% of 100k= €75k p/a
State ilness benefit = €10,816 p/a
Company sick pay?? = lets say 30k p/a
Amount of income insured
75k - (10,816 + 30,000) = €34,814 p/a
Amount of income protection paid out =
€34,814 p/a - 10,816 = E23,998
So you see. You thought you'd be getting €34,814 p/a but you won't, you'd be getting E23,998 after the insurance company deducts state illness benefit from your payout.
I think I saw that in some email from the HR dept but didn't appreciate it properly at the time (didnt help that the employer was acquired by another company just before the illness so it was very slow to get information about the benefits). You're right there is nothing to be done about it.I remember being covered a few times and it being clearly stated that any payments would be net of illness benefit.
I'm not really clear what you would like to happen in this context?
That example doesn't reflect my husbands salary situation. The maximum benefit is 75% of earnings, not just his base salary. The company illness benefit is 66% of his base salary so its way below maximum benefit for someone who has a large proportion of salary in bonuses etc.The amount received in the example provided is made up of three component parts totalling 75%, which is the maximum amount allowable to be paid out from all sources including any state benefits.
Therefore, in this case a total of €75k would be within the rules
Thank you Clamball. I'll have a look at the top up insurance but I have the paperwork and I think it's clear cut - made sense at the time. I don't believe I can do anything about this situation but I think it's not consumer friendly / good practice the way things have turned out - I think our advisors (we've had 2 financial advisors over the last few years) could have foreseen this and neither of them pointed out the potential implications of changing employment benefits/ salaries going up / breakdown between base and bonus changing / company policy paying out net of state illness.I am really sorry to hear that your husband is unwell.
I think it will boil down to what your top up insurance scheme pays out.
I didn't say it did-I was commenting on an example not making one.That example doesn't reflect my husbands salary situation. The maximum benefit is 75% of earnings, not just his base salary. The company illness benefit is 66% of his base salary so its way below maximum benefit for someone who has a large proportion of salary in bonuses etc.
Were they actually (independent) financial advisers, if so what type, or sales people?I think our advisors (we've had 2 financial advisors over the last few years) could have foreseen this and neither of them pointed out the potential implications of changing employment benefits/ salaries going up / breakdown between base and bonus changing / company policy paying out net of state illness.
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