WHAT WILL THIS PLAN DO FOR ME ?
It will make your monthly payments to your IVA when you can’t - paying out when you are unable to work through Accident, illness or Redundancy.
IS THIS INSURANCE COMPULSORY ?
No, it is entirely up to you whether or not you wish to protect your IVA payments.
CAN I INSURE FOR MORE THAN MY MONTHLY IVA PAYMENT ?
Yes, under this plan you can insure up to 125% of your monthly payment to your IVA. If you require more cover than this, it can be arranged up to an overall limit of the lesser of £1,500 per month or 50% of your gross income (net profit if you are Self Employed).
HOW QUICKLY IS THE FIRST BENEFIT PAID ?
When you have returned your claim form fully completed, and supplied any other documents required by the claims department, they will make a decision on your claim, and inform you of it within a couple of days. If they agree your claim, and they hardly ever fail to do so as long as you have been absolutely truthful on your application form, the first full monthly benefit will become payable as soon as you have been out of or unable to work for thirty days, including weekends.
FOR HOW LONG IS THE REDUNDANCY BENEFIT PAID ?
Until the expiry of one year from the date of the start of your claim, or until you return to work, whichever is the sooner ? Of course, if you insure for the maximum – 125% of your monthly IVA payment, the claim will cover fifteen months IVA payments, giving you plenty of time in which to find another job.
TO WHOM ARE THE CLAIM BENEFIT MONIES PAID ?
Directly to your Insolvency Practitioner.
HOW MANY TIMES CAN I CLAIM ?
There is no limit at all to the number of times you can claim, but obviously, only once at a time !
CAN THE PREMIUM INCREASE AFTER I COMMENCE THE PLAN ?
No, the premium rate is guaranteed at outset. The only thing that could change is if the Government increased Insurance Premium Tax - currently set at 5% and to do this they have agreed to always give one year’s notice of the increase.
CAN THE COVER BE CANCELLED BY THE INSURER ?
Only if they can prove that you have not been truthful when making your application for cover.
HOW DOES THIS PLAN INCREASE MY CHANCES OF MY IVA PROPOSAL BEING ACCEPTED ?
If Creditors accept a 49% dividend form an IVA, and 30% of these arrangements fail through the Client being out of work, they are actually likely to receive as little as 34% - a loss to them of 15%. To build in this valuable protection the Creditors need only to accept a 6.3% reduction in projected Dividend. If you were the Creditor, which would you prefer? The plan also ensures that your Insolvency Practitioner will receive their fees in full over the whole term of the IVA.
WHAT IF MY IVA IS EXTENDED BEYOND SIXTY MONTHS ?
You can apply to us for extended cover.
WHAT IF MY IVA IS PAID OFF EARLY ?
You may cancel at any time, and if you wish, switch to another of our cover packages.
WHAT IF MY MONTHLY IVA PAYMENT IS INCREASED ?
You can apply to us for increased cover.
WHAT IF MY IVA PAYMENT IS DECREASED ?
You can ask us to reduce your cover.
CAN I CANCEL THIS PLAN AT ANY TIME ?
Yes.
CAN THE INSURER CANCEL THIS PLAN ?
Only if you cease to pay the premiums or they can prove that you were not truthful when making your application for cover.
ARE THE CLAIM BENEFITS TAXABLE ?
The first twelve months benefits are tax free, after that, tax is deducted at the standard rate – 20% as at July 2007.
HOW DO I MAKE A CLAIM ?
Contact the Administrator - DMS, they will arrange for the Claims Department to send out a claim form to you that night.
HOW QUICKLY IS A CLAIM PAID ?
As soon as you have submitted a completed claim form and any other documents requested, Claims department have agreed your claim, and you have been off or out of work for thirty days including weekends.
HOW MUCH COVER CAN I HAVE ?
The lesser of £1,500 per month, 125% of your monthly payment to your IVA, or 50% of your gross income (net profit if you are Self Employed).
WHAT IF I CAN’T UNDERSTAND THE DOCUMENTATION, OR HAVE FURTHER QUESTIONS ?
Insurance wordings can seem a bit like “jargon”. Ask us to explain them to you, we will be happy to do so.
- Call our Lo-Cost Helpline on 0845 673 9999.
- Click the “Free Call Back” button on the website. If we are not immediately available, you specify when we should call you back
- E-mail us a request to call you back.
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