Can anyone advise if GIP is used for PD ?
I have GIP through my employee which kicks in after a year off sick. But with PD it is unlikely that health will improve and so I don't see it in the insurers best interests to continue to pay when there are other alternatives such as early retirement and redundancy due to ill health. A bit like mu BUPA which ran a mile once I was diagnosed.
Has anyone had any experience they can share ?
i didn't have income protection when i was diagnosed and i'm glad i didn't as i would just be bitter when they didn't pay up.
My thoughts are very similar, the insurance company has to much wriggle room to get out of paying up. I am sure in the contract on page 2641 para 7 footnote h(ii) there is a very clear statement wrt PD
Not sure if this is a lucky ( for us ) exception , but o/h had to finish work 4 years ago , he explored all options of medical retirement etc then to be told by HR that oh you started in 1998 at that time the company had enrolled in ' ill health insurance' for employees .
Must admit we were sceptical at first but following independent medical and 1 visit at home from a occupational therapist . this insurance company have paid ever since , technically o/h is still on company books and is paid a monthly salary as previously. Every year e receives a form from the insurance company that we duly complete .
It has saved us financially as PD struck at a time when financially we needed be seriously thinking about retirement
Don't give up hope maybe the company policy is with someone reputable
That sounds like what should happen to me but at present HR have hot made contact yet. Rules state that I tell HR within 1 hour of official start time that I am not fit to work, but they have forever to reply
Did oh max out on holiday before insurance started ?
I assume even with insurance oh still pays into pension
does insurance cure insomnia ? lol
Courtesy of PD I was no longer able to do my original job as Service Manager. My employer pays for a company wide health protection insurance with L&G.
The scheme pays 75% of you final salary if your health fails to the point where you can no longer work at all.
In my case, like many of us, it's more about working within your reduced capacity limits, not about stopping working altogther. Consequently my new role is Service Support Manager, which technically pays less. But my employer negotiated with L&G for L&G to pay the difference between to two jobs. I had to fill in some fairly inappropriate generic forms, L&G sent an occupational health specialist to see me at work. It seemed all straight forward to me, there might have been stuff going on behind the scenes of course.
Upshot is I'm still working full time in an easier less stressful role but my payslip is unchanged. The company even added a new office for me into our building to accomodate this change of role.
Regards to all, Tractorman.
Apologies took few days to reply
1- he struggled for 2 years before making decision but never took time off , to his detriment though.
He ended up in hospital so had 10 days off , went back but continued struggling?
he was an account manager for global finance company , he went to a short notice sales meeting to be informed that another company would be buying the division that he worked for .
In some ways that gave him a push , he accepted things were difficult to continue which did coincide with a decline in health.
He was signed off for 6 months during this time( our GP insisted as felt he shouldn't be doing all the driving/travelling) the company changed hands during this time which was a bit worrying .
2- he did take his leave for that year , as other posting he gets 75% of his original salary . The ins company is Generali
They have been brilliant and very supportive.
O/H did explore another post in the company but there was not anything suitable , part of the terms and conditions of policy was that he could get another job of lesser status and still be paid ' sounded to good to be true' but sadly he has never been stable enough to do this .
3. As company changed hands he had to take his pension as well , but to our surprise the new company enrolled him into the new scheme , they pay in and he would be entitled to death in service but he is not allowed to contribute !
He pays tax and NI on his ins salary as normal.
4- we did have lot of issues initially with HR taking lots of time but it did all fall into place eventually
Hope info is of some help
Magic ! Many thanks for sharing your experiences, it has certainly taken a load off my mind knowing that the GIP is real and not a figment of the insurance companies imagination.
As you say bubble x, in your case as it appears with mine at present HR are working at snail / sloath pace. But there's no hurry at present... o/h is coping surprisingly well with me being under her feet 24/7 !
I will be going back to the Doctors shortly and I will ask for 6 months unfit for work, which should use up my sickness entitlement for 20 years service at my grade. after that we will see how the GIP kicks in.
Take Care !
I have posted previously about Critical Illness Policies which pay a lump sum on diagnosis. There are many providers and some cover illnesses that others do not.
If you are purchasing a policy of any kind it usually pays to involve an IFA who will take the responsibility of researcing and selecting the product provider.Your resposibility lies in providing true and comprehensive replies to the health questions and in understanding the definitions of when the policy will pay out. For instance, Heart Attack will pay out on the evidence of the death of a portion of your heart muscle.This may seem strange but in actuality you cannot have a heart attack without this occuring. Ask your doctor and he will confirm.
It is the disabled conditions that cause the greatest confusion due to the activities of daily living requirement.
PHI and IP policies contain similar questions.
Yes GIP is the employer's alternative to depleting pension schemes to fund ill health early retirement. It is insurance for the employer to fund the level of salary for employees on long term sick leave. Note, the payments are gross taxable pay and as stated above you stay employed inc pension tax and NI.
This can cause problems on some final salary pension schemes as you continue on a lower figure in your 'qualifying' years so investigate this carefully. You're also still eligible for redundancy, whereupon, GIP stops and early retirement options come back into play
GIP also doesn't tie in ideally with PHI if you also have that, as although PHI benefits are currently tax free the insurer deducts any gross GIP payment' leaving you worse off if you'd bought the max PHI cover for your salary. I'm in that camp and would be better off if my employer didn't have GIP in place.
just to let you know that insurance company has today accepted my company claim for my GIPS. All very straight forward but the time it has taken !! Particularly as policy states that PD is a recognised diagnosis.
But, now after 15 long months it's now a wait until I see the pay in my bank account.
Good news. You may have had a payslip by now?
Depending on how much the insurance company is paying your employer to pay you via the payroll, you may be paying PAYE income tax and NI
Pension scheme contributions may have also restarted.
To recap, GIP is insurance for your employer and means they don't have to fund your salary while you are long term sick. If you were offered early retirement, they may have to boost the pension pot themselves so the insurance is nearly always the first choice if employers have it.
Good summary Kendo. My pension contributions have restarted and getting 50% my salary. But have to fund my NI from this 50%.
The insurance as you say is between my company and the insurance company. This sometimes makes life difficult when I was trying to find out if the claim was being dealt with and getting point blank refusals from both HR and Insurance Company.
My case is now set to be reviewed annually until I reach 65. Office contact is now being very low after 18 months off work..Anyway the payment will increase annually in line with company pension increase, so its not looking to bad. Currently this salary is going into AVCs which seems a good bolthole
My end of employment party has been put on hold and I feel that when I each 65 there will be very few people left who will remember me.