Protection

Question 1

Group IPI

Answer 1

Could be 100% employer funded or 100% employee funded or a combination.
Pre existing conditions usually covered up to the non medical/free cover limit.
Paid to employer who pays them to employee as salary and therefor subject to IT and NICs
Pensionable.
Info required

Question 2

Individual IPI

Answer 2

Individual pays the premium.
Unlikely to cover pre existing conditions.
Payed to the individual tax free.
Not pensionable.

Question 3

ASU

Answer 3

Quicker to underwrite than IPI but lower chance of a claim being paid.
Typcially starts to pay 30/60 or 90 days but claims may be able to backdated to day 1.
Can claim in addition to employers sick pay.
Claim paid until 1-2 years max
Why should Jane take ASU.
Cheaper than IPI.
Although slightly less chance of a payout this is balanced by a faster and less rigorous underwriting process.
Will provide cover upto 2 years. and jane intends on retireing in less than 4 years. Although cannot pay out multiple claims.
It can pay out in addition to employer sick pay, although it does not offer proportionate benefits.
Can set a claim period for 30 days with payments backdated to day 1.
ASU will also cover redundancy unlike IPI, helping further protect the assets in readiness for retirement at 60.

Question 4

Benefits of accepting employers PMI

Answer 4

Fast track NHS waiting list/return to work faster.
Choice of treatment times and location/private rooms.
Likely to be anutomatic acceptance/minimal underwriting.
Provider takes care of most payments/ admin
May be able to provide cover for Jane.

Question 5

Drawbacks of accepting employers pmi

Answer 5

Only covers acute illnesses, not chronic.
Any excess may be payable upon claim
Some conditions/treatments may be excluded.
Will incur a tax charge as it is a p11d benefit.
Cover may cease when leaves employment/may not be an option to cover once in retirement.

Question 6

Ensure appropriate protection is in place

Answer 6

IPP
Level of cover provided. What is the deferred period and what age does it cease.
Covered for own occupation or any occupation.
Willingness to self insure.
Any cost to Nick?
CI
Conditions covered/terms which the cover is paid out. Any underwriting required.
PMI
Extent of the cover provided by PMI and whether it will cover Jane.
How much is the cost to NIck.
Is there an option to continue with the policy once in retirement.
General
Term cover is required for
Sick pay from both employers?
P11D value for benefits and budget for protection.
Loading for Nick as a smoker and family health if these products were on the open market.
Level of state benefits provided.