Can a time limit be introduced on an existing income protection policy?

[Jody]

I started an income protection policy in 2002. The policy covered all serious illness up to the age of 60 which is the retirement age in my position.

I have been unlucky healthwise and over the last 18 years had to submit a claim 4 times ( including current application) but got back to work and only drew payment once.

This has been the same illness

Now I understand they have changed their terms and conditions to only pay for 5 years
Now this is not the policy I was sold. I could have been in payment for 30 years realistically but I always tried very hard to get back to work.

I really need my current claim to get me to 60 like the plan stated ... can they make such radical policy changes?

 

[Dr Strangelove]

Now I understand they have changed their terms and conditions to only pay for 5 years

Tell us verbatim what the changes are to the terms and conditions are.

With that you’ll get better advice.

 

[Jody]

 

[Jody]

The ceasing age was 60 regardless of term when I signed up 22 years ago. My claim in 2005, 2014, 2019 and now 2024 are all for the same cancer. I am 51

 

[Brendan Burgess]

Hi Jody

Doesn't seem right.

It would be fine for newly insured customers but not for existing customers.

Have they told you that this applies in your case?

It's fine to change the terms of a car insurance policy as it's an annual policy.

They couldn't change the terms of a life insurance policy as it's for a set term.

I presume income protection is an annual policy but the premium is set at the start? It's not as if you can switch to another insurer.

Brendan

 

[DirectDevil]

In principle, no party to a contract has the legal power to alter it's terms unilaterally.
In the event that a right is claimed to alter contract terms on a unilateral basis that contingency would need to be specified at the time of formation of the contract and be provided for in the wording.
Put another way, there is no right for the insurer to alter terms and conditions at their whim. As pointed out by Brendan at #5 above this is not an annual contract.

A crucial point is the issue of continuity of the cancer condition.
You have stated that this is the same cancer condition. They may try and argue that these are 4 separate and distinct instances of cancer.
As I don't know the full contract terms I am unsure if this argument would be of advantage to the insurers and what they might be up to.

In OP's position I would be getting medical evidence from my people to establish continuity. The point of this exercise is to pin entitlement to benefit to the first instance of cancer and thus avoid the insurer's attitude.

Remember the principle of proximate cause. This is the active efficient cause which brings about a particular result without intermediate interference. If you can show all 4 episodes are from the original manifestation of cancer that should bolster your position

This needs to be dealt with reasonably promptly as some insurance contracts have a time limit within which to dispute a decision or deem the point to be accepted / lost.

Finally, and most importantly, I wish you well in dealing with this medical demon.

 

[Jody]

Hi Jody

Doesn't seem right.

It would be fine for newly insured customers but not for existing customers.

Have they told you that this applies in your case?

It's fine to change the terms of a car insurance policy as it's an annual policy.

They couldn't change the terms of a life insurance policy as it's for a set term.

I presume income protection is an annual policy but the premium is set at the start? It's not as if you can switch to another insurer.

Brendan

They have told me over the phone that I would be covered for 5 years. I gave sent back many questions ad I believe I should be covered until I am 60 and requested a response in writing... Still pending

 

[Brendan Burgess]

A crucial point is the issue of continuity of the cancer condition.

I am not sure that this is relevant?

Say someone takes out an income protection policy and claims for a heart attack for two years out of work. The policy continues as long as they continue to pay their premium. If they subsequently get un unrelated illness e.g. cancer, would it not still be covered?

Brendan

 

[LDFerguson]

Is this an individual policy or part of a group scheme? Cover issued as part of a group scheme (e.g. Cornmarket's group schemes for teachers) would usually have clauses that the insurer can review the terms for the whole group scheme from time to time. Individual policies tend not to.

 

[Jody]

Liam and Co thank you. It is a group scheme and I got an email from Cornmarket today saying the union and insurers changed the plan. I have to admit I am shocked at the changing of the goal posts over 2 decades into the policy.

 

[ACER10]

Liam and Co thank you. It is a group scheme and I got an email from Cornmarket today saying the union and insurers changed the plan. I have to admit I am shocked at the changing of the goal posts over 2 decades into the policy.

Jody.. well done for picking up on this. I am a teacher and received the email as well.

- 37.55 per fortnight for salary protection (976.30 per annum).
- 13.46 to Cornmarket (so €323.04)
- 16.45 to ASTI (€427.70) to Trade Union.

The BIG worry I have is that I spotted a company mentioned that also appear to have been successful in taking over EAS (employee assistant scheme) and they are all website and little substance in my experience.

VHI have handed over parts of their benefits to the same company for example The Physio Company is now owned by this same company. ..and so VHI Physio check is brutal. They even advertised physio with VHI in Brialhill Galway, and then refused to follow through..I couldn't plead a case...was going in circles.
I wonder how ASTI feel.. have they checked the changes?

Cornmarket sent some email today going on about access to a nurse if ill. I wouldn't trust this at all.
(I sought out advice through EAS about something previously. They refused counselling, and instead said the expert team would make a face sheet for me. Said team, must have googled links but from a different country and not relevant at all.)

The email below is just fluff to distract from the bigger changes that you spotted.
Well done you.

 

[Jody]

I do see outsourcing and changes in the EAP and like the above efforts to get people back and that's all OK until you hit a Critical Illness that you can't come back from and feel totally sold out. I had a policy that would see up to the mortgage was paid and now it appears I don't. I stated the continuity case etc and it just seems like the answer is "tough we changed the goal posts " which honestly is massive and a life changing void in support.
Interesting people in work don't seem to know about this ... the unions might need a poke