Shouldn't an insurance policy pay out?
Life Insurance YES
Protection of income, YES
Yes, I have mortgage payment insurance.
Cover Critical Illness NO
Private Medical Insurance NO
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Life Insurance:
As expected, I got my full pay. We don't think there are any exclusions that would affect a claim.
Protection of your income (IP):
When the policy says you can't work, you get the full amount you were expecting.
MPPI stands for Mortgage Payment Protection Insurance.
Full payment as expected, as long as the policy's definition of disability says the client can't work.
CIC: Critical Illness Coverage.
Since bird flu isn't on the list of covered conditions, we wouldn't expect this type of policy to pay out unless the disease made the client "totally and permanently" unable to work again.
Private Medical Insurance (PMI):
Phil Taylor, the Managing Director of independent PMI specialist Preferred Medical, tells us that once the condition or a related condition becomes severe, the patient is likely to be admitted through A&E to an NHS facility with Intensive Care facilities. Intensive Care is almost never offered in the private sector.
Kevin Carr, a Senior Technical Adviser, said, "Income protection and life assurance policyholders shouldn't worry about their protection insurance policies in case of a bird flu outbreak. It's also important to note that very few Critical Illness policies are sold without life cover." This is more proof that people in the UK need Income Protection, since we are all more likely to lose our income because we get sick than because we die.
