FAQs

Question:

Why do I need Protection against Accident, Sickness, & Redundancy or Business Closure (ASR)?

Answer:

For how long could you pay all your monthly bills with no income? If the answer to the question worries you, then you need to consider Short Term Income Replacement insurance, to provide you with an income in the event you lose your income through being out of work through Involuntary Redundancy or Business Closure, or being off work as a result of Injury or illness

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Question:

I get paid for six months if I am ill. Would your policy pay out whilst I’m still being paid from work?

Answer:

Our policy will pay up to 125% your regular provable monthly outlay including your Mortgage, Rent, Secured Loan, Life Assurance, Home Insurance, Motor Insurance, Council Tax, Electricity, Gas, Heating Oil, Water, Unsecured Loan(s), Hire Purchase, Lease or Leasing, Lease Purchase, Credit or Store Cards, IVA or DMP, or any other regular provable monthly outlay for up to 12 months, even if you are still being paid from work. However you can spend the money on whatever you like and is all paid to you tax-free.

However you can spend the money on whatever you like and is all tax-free.

Question:

What is the maximum benefit available under the policy?

Answer:
The benefits available under this policy are among the highest currently available in the UK market. If you are employed, you can have up to the lowest of 65% of your normal gross monthly income, 125% of your monthly allowable expenses, or £3,000 per month. If you are running your own business, or working for a relative who is, you can have up to the lower of 125% of your monthly allowable expenses, or £3,000 per month

Question:

If I was made redundant, I would only get one month’s notice. I need a policy that would start to pay my mortgage at the end of one month if I were made redundant. Do you have this available?

Answer:
Yes we do. We call it “back to day one” cover. As soon as you have been off work for 30 days, including weekends and bank holidays, the first monthly benefit payment is triggered. It is payable on day 31 of your unemployment and covers right back to day one of that unemployment.

Question:

How do I get instant cover?

Answer:
Submit an instant online application – you can usually be on cover within the hour.

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Question:

If I no longer want the cover, how can I cancel it?

Answer:
The policy renews every 12 months but, whilst the insurer cannot cancel the policy in that 12 month period, you are able to cancel the policy at any time by simply cancelling your direct debit or informing DMS.

Question:

Why do I need protection against Illness, Injury and Involutary Redundancy and business closure? In any event, the Department for Work & Pensions (DWP) will pay my mortgage if I am out of work, surely?

Answer:
The Government have what are called the Mortgage Rescue and the Support for Mortgage Interest schemes along with various other benefits which may be available. From April 2016 however the waiting period before you can claim on the Support for Mortgage Interest scheme for example is 39 weeks (9 months!) and then it only covers your mortgage, not any other bills. It also only covers interest and there are limits to the amount of interest that can be covered. You will see therefore that by the time you receive help from the government, your lender could already be instigating repossession proceedings against you. Here are details on the government website: https://www.gov.uk/support-for-mortgage-interest

Question:

I am self-employed. No-one can make me redundant! Can I still have this Protection?

Answer:
Yes we can still provide comprehensive protection for you if you are self-employed. Instead of protection against Involuntary Redundancy, we give you protection against “Business Closure”. You can’t be made redundant, true, but you may have to cease to trade for a whole variety of reasons – markets change, premises can be compulsorily purchased, you may have bad health, or business may take a dive. Unlike some other insurers, when business starts to decline through no fault of yours, we don’t insist that you sit around waiting for someone to bankrupt you. We offer a route to avoid that, thus allowing you to start again, still with a clean slate. You must inform HM Revenue & Customs that you have ceased to trade, and sign on at the DWP, as someone actively seeking work. We will treat you as a if you were an employed person who has been made redundant. Remember too, that even self-employed people can have accidents and can become sick. We can provide benefit of up to 125% of your regular monthly expenses, up to a maximum of £3,000.

Question:

I have just started up my own business, can I still have Income Protection cover as I do not have any accounts or proof of income?

Answer:
We do not ask any questions about income for applicants running their own business. We require details only of regular provable monthly outlay. You can have injury and illness cover from day one of the business and you can have Business Closure, after 2 years trading, or earlier as soon as your accountant can confirm the affordability of your monthly outlay.

Question:

I am in a high-risk employment category, will I have to pay extra premium?

Answer:
Normally no, our rates are fixed regardless of occupation although from time to time new applications from clients in certain industries or employers may attract a higher premium or even not be available. If in doubt, just submit your application and we will tell you. It will not cost you anything at all to find out if you are able to have this valuable cover.

Question:

I have been ill recently. Can I still have Accident & Sickness cover?

Answer:
Yes of course you can still have cover. Any reoccurrence of the same illness may be excluded however.

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Question:

What happens if after claiming I go back to work and become ill again, I am made redundant again my business or my employers business closes?

Answer:
You can make as many claims on our policies as you need to. Regardless of the number of claims, the Policy Terms and Conditions state we cannot increase premiums for individual policyholders so, when you renew the policy (annually) you will not be penalised as a result of an earlier claim. After a claim for Involuntary Redundancy or Business Closure, you must return to work and pay premiums for at least 6 months before you are eligible to claim again. After an Injury or Illness claim, you must be back at work for 6 months before you can claim for the same or a related condition, but you only need to be back at work for one month before you could claim for a different condition.

Question:

Can benefits payable under the policy be made straight to someone else, my Mortgage Lender for example?

Answer:
No, benefits are payable to you, but what you do with them or spend them on is entirely up to you.

Question:

Can I be insured against Involuntary Redundancy or Business Closure on their own and also, can I be insured against Illness & Injury on their own?

Answer:
Yes, you can have Involuntary Redundancy or Business Closure (depending whether you are employed or self-employed) as a stand-alone product and you can also have Illness and Injury as a stand-alone product. You must be aware however that if you become ill or have an injury while you are in the middle of a redundancy claim, you will cease to be eligible to receive policy benefits if you are no longer in a position to take up employment if a job arose.
Our most popular cover is for all of these eventualities with the benefit payable for 12 months and payable (monthly in
arrears) from day one of the claim (back to day one).

Question:

Do I have to be in Hospital to claim the Sickness or Accident benefits?

Answer:
No, you just need to be signed off work by your G.P.

Question:

My skills are in demand. If I were made redundant, I wouldn’t be out of work for long. If I were sick or broke my leg for example, then that is different; I could be off work for some time. Do you have a flexible policy to cover this?

Answer:
We will be pleased to quote you for different cover packages, so that you may select the one that is best for you.

Question:

Are claim benefits taxable?

Answer:
As they are payable for only up to 12 months, no they are not taxable, they are TAX FREE.

Question:

I hear a lot about these kind of ASU/ASR/PPI policies not paying out. Under what circumstances would you refuse a claim?

Answer:
There are three circumstances when we would refuse to pay a claim:

    • Cover has been cancelled because premiums are unpaid.
    • Claim is for a risk that is not insured, like claiming for dismissal through failure to reach agreed performance standards or dismissal for gross misconduct.
    • If you have given an untruthful answer on your application form. It is essential therefore when completing the application form you answer all questions as completely and accurately as you can.

In 2015 DMS approved 95.45% of all claims notified by clients.

Question:

Is it expensive to insure against Illness, Injury, Involutary Redundancy or Business Closure?

Answer:
How much is your house worth to you and your family? More than the cost of a DMS Short Term Income Replacement policy? It most certainly is. Our Short Term Income Protection costs less than you think. In less than 15 seconds our Quick Quote will answer your question for you.

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