i have been on income protection for 12 months and have just left my job and i’m owed long service leave payout,does this affect my income protection
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Welcome to the Community @slim1965
Some members with experience might provide opinions or their experience but the Community is not a place to seek personal legal or financial advice nor are members licensed to provide it.
Your best source of information will be your income protection policy issuer. Start by reading your policy PDS that could provide an answer.
If you are hesitant to talk to them directly consider you are obliged to disclose any change of circumstance and failing to do so for anything that could be relevant to your policy could result in adverse outcomes.
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You need to check your insurance terms and conditions.
But I would have thought that as the general idea of income protection is to pay you whilst you cannot work in your normal employment due to injury or illness, then if that employment ends, so too would the insurance payment.
That is my understanding of this type of insurance. So you need to check with the insurer.
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Some policies appear to stop payment when you cease employment? Have you discussed the circumstances with your insurance provider?
I’ve had policies with 2 different providers since 2000, and seperate cover for TPD. Fortunately never needed to call on them. The PDS referenced in the product you have will list how long the cover is available for (up to 12 months or 2 years common), and the conditions under which payment is terminated.
It’s one for those familiar with the product and legally experienced to advise on. General comment and not specific to your circumstances - being assessed medically fit to return to employment is one commonly stated reason to end payments. Receiving a TPD payment or stopping work may also affect your policy. The policies are only intended to cover the insured until they are fit to return to work. All have expiry conditions. There may also be limitations on payment if one ceases to contribute to the policy (EG required monthly payment), based on one of my previous products as an example.
Hope you can find the answers in your product PDS or your insurer can provide reassurance you still meet the policy conditions.
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As others have said, check your income protection policy terms & conditions now. In common with all insurance policies, I think you will find somewhere that you are obligated to inform the insurer immediately of any changes of circumstance or condition.
If you do not inform them in a timely fashion they are more than likely to require you to repay any (what they will consider an) overpayment, and may even penalise you for not disclosing immediately.
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