Changes to Income Protection Insurance from 1st April 2020
- Will the new changes affect my existing Income Protection policy?
No, the changes will only apply to new income protection policies issued from 1 April 2020. All existing terms and conditions will still apply to your existing policy.
- Can I still apply for the Agreed-Value income protection?
As long as your application is lodged prior to 1 April 2020, you still can apply for Agreed-Value. Although different insurance companies may bring forward this deadline.
After 1 April 2020, you can not apply for Agreed-Value Income Protection.
- If I currently have “Indemnity” Income Protection Insurance, can I alter it to “Agreed-Value” before the change?
Yes, you can alter the policy as long as the application for alteration is submitted prior 1 April 2020. Financial underwriting is required to prove your income.
- If I already have an Income Protection Insurance Policy, will my premiums increase?
Most likely. As Income Protection is a drain on insurance company profits, most companies intend increasing premiums more than in previous years.