How does it work once you've applied?

How does it work once you've applied?



What is Income Protection and how does it work once you’ve applied?

Income protection is a long-term insurance policy that is a means of making sure you can cover your monthly overheads if illness or injury prevents you from working. Instead of dipping into your savings to cover things like mortgage repayments, utility bills and so on, PG Mutual provide you with a replacement income while you’re off work until you sufficiently recover or reach age 65, whichever comes first. And as a VDS member, you receive a special discount on their policies.

What exactly is illness and injury?

As with any type of insurance policy, it’s important to know what’s covered and what isn’t. Some of the things that PG Mutual won’t cover include cosmetic surgery, drug or alcohol-induced injuries, and hazardous activities. So, if become ill or injured through these methods or similar, PG Mutual are unlikely to cover your lost income. 

Fortunately, there’s an awful lot that is covered. You see with PG Mutual, the clue is in the name. As a mutual society - read: not-for-profit - PG Mutual is exclusively on the side of its policyholders. In fact, between 2016-2020, 94% of all new claims were eligible for payment, with total claim payments exceeding £4.5 million. The top three causes of new claims were: musculoskeletal injuries (27%), infections and flu (23%) and gastrointestinal illnesses (14%).

What’s more, PG Mutual don’t apply penalties for claiming or limit the number of claims that you can make.

Protect your income now and invest in your future

An Income Protection Plus policy includes a Profit Share scheme that aims to accumulate a lump sum for payment once the policy reaches maturity, whether you claim or not. 

So, how does it work? Whenever PG Mutual make an annual profit from Income Protection Plus business, it’s shared with their members through a notional ‘Annual Bonus’ to their Profit Share Accounts, which is then invested for the future. When PG Mutual apportion interest during the lifetime of your policy, it’s done on a compound basis, meaning the longer your stay with PG Mutual, the greater your potential pot is likely to be at the end of your policy.

How do you get covered? 

You have three options. The first - and easiest - route is to complete the short online application, detailing your medical history. With this route, pre-existing medical conditions are excluded from cover. 

Your second option is to complete an online medical questionnaire where you help our underwriters understand your medical history. As this is method is all online, you can complete the questionnaire at a time and place that best suits you. This information is passed to PG Mutual underwriters who will look at your application more carefully to see if it’s possible to cover any pre-existing medical conditions that you are living with. That spells extra peace of mind for those with well-managed conditions. 

Finally, if you prefer the human touch, you can chat with a qualified nurse over the phone to discuss your medical history. Like our online medical questionnaire method, this information is passed to PG Mutual underwriters who will look at your application more carefully to see if it’s possible to cover any pre-existing medical conditions that you are living with.

Make the most of your member benefits

A great deal just got even better. As a VDS member, you are entitled to 20% off your first two years of cover with PG Mutual. 

Just use the discount code ‘VDS’ when arranging your policy. Visit us online at pgmutual.co.uk or call PG Mutual on 0800 146 307 to find out more.

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