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Income Protection Insurance – sounds good in theory

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Income protection insurance is meant to protect customers by providing a tax-free income in the event that you are unable to work (because you have suffered an injury/illness). On paper, it therefore seems like a great way to protect your income in the event of any unfortunate, unforeseen circumstances in the future. The problem lies in the fact that many who have taken out this income insurance, and then find themselves unable to work, have found it virtually impossible to then make a claim.

One of the main reasons which make it so hard to successfully claim with this type of insurance is the method in which insurers assess policyholder’s ability to work. Those that took out this type of insurance on a ‘work-task’ basis means that before they will be able to make a claim, they will need to perform a series of tasks, to demonstrate to the insurance company that they really are unable to work.

The types of tasks insurance companies ask their policyholders to perform can involve using a pen/keyboard with either of their hands or with an aid, walking 200 metres on a level surface with an aid without stopping or suffering pain, or having sufficient eyesight (with aids) to read 16 point print. Many have criticised these tests, as only those are severely incapacitated would struggle to pass them. Additionally, these tests do not take into consideration an individual’s mental health, and whether they are emotionally and psychologically fit to work.

Situations therefore arise where individuals who are suffering from psychological illness/stress are unable to work, and deemed so by their GPs, and yet are unable to claim on their income insurance policies as they are still able to perform the basic, technical tasks these policies lay down. Many critics have claimed that these basic tasks should be abolished, in favour of more realistic indicators of a person’s health. Furthermore, it should be highlighted that physical and psychological illness are two very different types of health concerns, and should not just be lumped together using a test for both. Psychological illness requires a much more delicate, emotionally focused type of testing, and the nature of the tasks asked by insurance companies to policy holders should reflect that.

At the moment, insurance companies may attempt to justify their work task based method by claiming that it prevents a number of fraudulent claims, preventing a misuse of the system. Instead, this seems to be a thin smoke screen by which companies can ensure they pay out only minimal claims to the few that cannot pass the basic tests. For those policyholders that have been regularly paying their premiums in an attempt to be risk averse and secure their futures, this seems like a kick in the teeth when they are prevented from claiming because they can pass a test which requires them to read 16 point writing.

It is therefore advisable that people with income protection insurance review their policies to find out on what grounds they can make a claim should they need to. If they discover that their policies are on a work-task basis, they should consider switching policies where they will be getting a fairer policy for their money.

Codicils

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Codicil

What is a codicil?

A codicil is a formal document used to change an original will (legal declaration managing one’s estate after their death). It supplements and ‘republishes’ the will to which it refers, which means that the will is treated as if it were executed on the day the codicil’s execution.

What can a codicil amend?

The amendments implemented by a codicil can be smaller matters such as changing the executors (the administrators of the estate) or more significant ones such as changing the gifts under the will. For major changes to the will it is advisable to revoke the will and execute a new one.

What is the form of a codicil?

A codicil needs to comply with the same legal requirements as the will. These are as follows:

  • It must be in writing;
  • It must be signed by the person making the will (the testator); and
  • It must be witnessed and signed by at least two witnesses present at the same time.

It should ideally be executed at a solicitor’s office where the compliance with the rules can be ensured.

If you need a will or a codicil, there are several good options available at modest cost. You may choose to use a specialist wills solicitor or choose one of the available online will services.

What is it about Manchester and law ?

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Manchester at the vanguard of progressive law firms

Many outside the legal profession and in fact many within it have failed to recognise that Manchester is at the forefront , and has been for some years, of the legal scene outside of the Magic Circle firms. This fact was also recently made in an interesting recent article in the FT.

It’s not clear why Manchester in particular seems to have more of the progressive firms, or who starrtd the trend, but it may have something to do with :-

  1. Pannone is based in Manchester and has for many years been one of the more dynamic and creative law firms
  2. Many of the most successful personal injury practices are in Manchester and the North West

As regards personal injury, it is interesting that the public and many lawyers seem to think either that those in this field are nor proper lawyers in the sense of what they do (a little like conveyancers are seen as paper shufflers only, which again is incorrect) or simply generally cock a snoop at them. In fact, personal injury lawyers tend to be far more commercial than most other lawyers in other areas of practice in small or medium sized firms. They have recognised, long before many other solicitors (many of whom still don’t get it) that law has become more of a business and a competitive one at that. They invest in marketing and understand the nature of the dialogue with their customers and that customer service is important.

Perhaps pure coincidence (or perhaps not)  but also interesting that the Co-Op, based in Manchester, are one of the non-lawyer providers who have shown most interest in entering the legal service market now that it is opening up.

Whatever it is about Manchester, it’s proving to be premier league for legal services as well as for football and we salute the Manchester law firms.

Any views on the above ?