I am thinking of replacing my payment protection insurance against a loan and a couple of credit cards with income protection insurance cover from yourselves.

Q: I am thinking of replacing my payment protection insurance against a loan and a couple of credit cards with income protection insurance cover from yourselves. I just have a couple of questions:

1) I am planning on moving to the East Midlands and will therefore be changing job. This will make me subject to a new probationary period. Will this impact any cover I would receive? I haven’t yet got a new job, nor have I handed in notice at my current position.

2) Is it best to apply for income protection insurance cover from you and then cancel the payment protection insurance I agreements with the card and loan? My gut instinct says this would be best.

A: If you apply for the unemployment protection insurance before you change jobs then you will be eligible for cover. If you were to apply whilst in your probationary period then you would not be eligible as the underwriters would view it as temporary work.

If however, you start the policy before you change jobs, if you were to lose your job due to not meeting the requirements of a probationary period you would not be eligible to claim under this insurance as it would not be viewed as losing your job through no fault of your own.

Please note you cannot transfer from a credit card protection insurance policy as it covers a varying amount. You can transfer cover from a loan payment protection insurance policy as it cover a fixed amount.

If you were to apply for income protection insurance cover we recommend that you only cancel any old policies once you have confirmation that the new one has started

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