With the entire globe weathering COVID-19, the highly infectious respiratory disease caused by a new coronavirus. At ActiveQuote, we saw an instant spike in enquiries about income protection and now, sadly, many redundancies seem likely as businesses throughout the UK face closure.
The income protection insurance market keeps changing and here we've broken down the main insurer developments which have recently taken place. Here are the main details from the major insurers with some frequently asked questions. (All the data below is correct as of 7th April 2020).
Short Term Income Protection
Short-term income protection insurance is designed to cover you should you be unable to to work for a fixed amount of time, usually six months to a year.
Can I take out a new policy?
Yes, you can still purchase Accident and Sickness cover.
- L&G are still accepting new Accident and Sickness policies
- Trent Services are still accepting new Accident and Sickness policies
- Firstcall are also accepting new Accident and Sickness policies, however they have now placed restrictions for people working in the travel & leisure, retail or manufacturing industries
- All other remaining insurers are not currently accepting new short term policies, however their position can change daily (please speak to us directly if you would like further information)
However due to the Covid-19 outbreak, both Unemployment and Accident Sickness and Unemployment (ASU) covers are no longer available.
Should I expect a delay to my policy going live?
No, insurers are reporting no delays for any new policies being placed on risk .
Am I covered for coronavirus under short term income protection?
Yes, the good news for existing policyholders (pre Covid-19 outbreak) is that many insurers will pay out for coronavirus under their terms and conditions.
Unfortunately for new customers many will not be able to claim for Covid-19 based conditions as the insurers have changed their terms for new customers.
Am I covered for self-isolation under STIP?
No, unfortunately self-isolation is not covered with any of the short term insurers.
Can I renew my STIP policy?
Yes, policyholders can renew their STIP policy however the insurer terms may change at renewal. The team at ActiveQuote will be happy to help with any questions you may have at renewal.
Long Term Income Protection
Long-term income protection, otherwise known as long term sickness insurance, is designed to replace your gross monthly income right up until retirement age or an agreed time period should you be unable to work due to illness or injury.
Can I take out a new policy?
Yes, customers are able to purchase a new long term income protection policy, all insurers are still quoting for new business cases.
Should I expect a delay to my policy going live?
No, insurers are reporting no delays for any new policies being placed on risk.
Do I need to submit a GP referral?
The situation with each insurer is different and changing continuously, the currently insurer guidance is as follows;
- Aegon are currently unable to process applications that require medicals referrals
- Aviva are currently unable to process applications that require medicals referrals
- AIG are currently unable to process applications that require medicals referrals
- Royal London are still processing GPR reports and have reported a good turnaround times
- LG are still looking at medical checks, however medical direct has no appointment slots available until 20 April 2020
- Other LTIP insurers have said that they aren’t actively chasing GP referrals or medical evidence due to the strain on the NHS
Am I covered for coronavirus under long term income protection LTIP?
Yes, the good news for our existing customers (Pre Covid-19) is that if you had already taken out income protection before the virus spread, you’re covered under the terms of your policy.
For all new customers, all long term IP insurers will consider coronavirus cover except British Friendly who will exclude on all new business cases.
Please note, most long term insurers have added specific pre-screening questions in regards to coronavirus symptoms. If the criteria are not met, some insurers will exclude coronavirus and its symptoms, and some insurers will decline the total risk.
Am I covered for self-isolation under LTIP?
Yes, L&G and Cirencester will consider claims for self-isolation if medically advised to do so as a necessity, and not doing so as a precaution or in view of members of their household who might have contracted coronavirus or have symptoms of it.
All other insurers will not accept claims for self-isolation.
Latest income protection insurer updates
- The Exeter have restricted their Real Life product to a maximum age of 59
- Shepherds have introduced specific wording regarding coronavirus and what is not covered, which also includes restrictions on all respiratory conditions
- Holloway will not accept anyone who is currently considered Furloughed (i.e. on 80% pay covered by UK Government).
- The Exeter have placed a 12 month exclusion for new customers with all respiratory conditions or symptoms of them
- AIG will decline any policy if the customer has any signs of coronavirus
- Cirencester have removed fracture cover, hospitalisation and severe injury cover from their policies
Can I renew my LTIP policy?
Yes, policyholders can renew their LTIP policy however the insurer terms may change at renewal. The team at ActiveQuote will be happy to help with any questions you may have at renewal.
