Keeping track with a clients life – Have Vitality raised the Income Protection bar?

2 Comments

1. 

   Warren Robins on 26th July 2023 at 4:22 pm

   Hi Adam,
   Having just looked into GIO for an Aviva IP client and I read their policy document as making their GIO of no benefit, as it has the same impact as taking out a new Aviva policy with full underwriting, as it excludes any pre-existing conditions suffered since the original policy started due to these two clauses, which defeats the object of having GIO, in my view.

   • We won’t cover you for any incapacity which arises prior to
   the start of the new policy or prior to the life change event
   occurring.
   • We won’t cover you if the condition was diagnosed or you
   suffered symptoms (whether diagnosed or not) before the
   start of the new policy or prior to the life change occurring.

   I’d welcome your thoughts on the impact of these conditions on the benefit of their GIO

   Warren Robins

   Reply
2. 

   billy mcleod on 23rd October 2023 at 3:01 pm

   Adam
   these are the limits for Royal London re IP GIO’S-Changed to max of £12k from £10k .

   Limits on increasing your cover You can increase your cover more than once. The total amount you can increase your cover by over the term of your plan, across all events, is £24,000 a year. The maximum amount you can increase your cover by, for a single event, is limited to the following amounts:

   If your increase is because of an increase in rent, the maximum amount you can increase your cover by is the lowest of
   : • half your original amount of cover,
   • the maximum annual benefit available based on the person covered’s pre-incapacity earnings less the total amount of cover you have before the increase,
   • the maximum amount of cover we offer at the time of the increase less the total amount of cover you have before the increase, or
   • the monthly amount of the increase in rent multiplied by 12.
   • £12,000 a year.

   If your increase is because of any other event, the maximum amount you can increase your cover by is the lowest of:
   • half your original amount of cover,
   • the maximum annual benefit available based on the person covered’s pre-incapacity earnings less the total amount of cover you have before the increase,
   • the maximum amount of cover we offer at the time of the increase less the total amount of cover you have before the increase, or
   • £12,000 a year.

   Reply