34% increase on income protection renewal - bye!

34% increase on income protection renewal - bye!

Author
Discussion

Ken Figenus

Original Poster:

5,678 posts

116 months

Thursday 9th October 2014
quotequote all
Exeter (un)friendly whacked my premiums up by 34% for a Nov renewal. Outrageous. It covered me for £1500 a month for 2 years if I broke a leg/couldn't work. Never claimed - ever - fit as a fiddle!

Anyone any idea of a decent firm for similar cover - just something to pay the mortgage and Aldi bills if I cant graft for a few months.

Lots on MoneySupermarket but that means lots to research - how good are the cheaper ones come claim time...

Cheers

jfbrin

415 posts

171 months

Thursday 9th October 2014
quotequote all
http://www.cirencester-friendly.co.uk

This should sort you out.

Ken Figenus

Original Poster:

5,678 posts

116 months

Thursday 9th October 2014
quotequote all
Hmm...everything except 'get a quote' on that website or am I being dumb?

Its such a simple requirement (and I really use an IFA for complex stuff like my SASS!) I just want the best cover/premium for £1500 a month cover.

I like the word 'friendly' big time though (well not that it did me much good with Exeter) but can you tell me why do you like these guys?

Appreciate it - or its CCCP Meerkats for me!

KF

Ginge R

4,761 posts

218 months

Thursday 9th October 2014
quotequote all
Ken,

If you want to go down the friendly route, consider giving these boys a punt. They all have subtle nuances which can serve to help and annoy in equal measure. For more mainstream cover, most major insurers should be able to help as well mind.

http://www.wiltshirefriendly.com

Ginge R

4,761 posts

218 months

Thursday 9th October 2014
quotequote all
Ken,

You posted just as I did. Friendlies are great for niche service, and can be far more flexible when it comes to underwriting. I'm transacting an arrangement on behalf of some close protection clients in Afghan at the moment and there's no way I would get the same level of service as I'm getting with them, as I'd get from a major.

If you have an IFA but tell them you want to do it yourself, I'm sure he/she would be happy to help even if there was nothing in it for them.

dalenorth

821 posts

166 months

Thursday 9th October 2014
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Hi,

We specialise in protection products and have helped many phrs, I'm happy to help if you want to pm me?

marky1

1,045 posts

195 months

Friday 10th October 2014
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Out of interest what kind of premium were you paying? Thanks

Ken Figenus

Original Poster:

5,678 posts

116 months

Friday 10th October 2014
quotequote all
I was paying £40 month for 24 months of £1500 after a month. They then whacked it up to £53 this year. Meerkats have some for 12 months cover for under £30 but I need to know the company is good...not just cheap! HTH

Ken Figenus

Original Poster:

5,678 posts

116 months

Friday 10th October 2014
quotequote all
Dale - welcome to drop me a quick quote as you can see what I'm trying to replace and what my budget is like.

Also getting a quote of Wiltshire - thanks for the tip Ginge.

Just in case its of interest to anyone I'm also reviewing my use of British Benefit Soc for another element of sickness cover I had in place (may now be best to have all eggs in one basket?). The key thing here is they ALSO annually give you a slice of their profits (or surplus as they call it). This then accumulates over the years tax free with compound interest on top. Its currently a pot worth about half of what you paid in over the years. Nice!

E.g for a fortysomething, pay in £140pm get £480pw sickness cover for 6m then half that for 6m then £120pw forever....and get about half your £140pw stashed up with interest back at age 60. PM me if anyone wants the name of the plan etc

Cheers

dalenorth

821 posts

166 months

Friday 10th October 2014
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PM sent Ken

Tallboy

92 posts

259 months

Friday 10th October 2014
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The type of policy you're talking about there is known as a 'Holloway' policy so named after George Holloway the MP for Stroud and local industrialist (in 1878). He wrote an essay in that year for the HoC and whilst he didn't win he founded the first 'Holloway' Society based on the principles contained.

By taking out that policy not only are you receiving the sickness benefits/protection you are becoming a 'with profits' member, you receive a share of the excess/surplus premiums (Profits) and potentially a final bonus if held for term.

However traditional Holloway policies have been classified as investment products rather than protection and with the recent regulation changes under RDR have fallen out of favour. Most of the remaining Holloway Societies now sell 'Non-Profit' versions of the policy along side the traditional.

Exeters most recent increases have been widely publisised due to higher than expected level of claims, if you want to protect against this then go for a policy that offers guaranteed premiums. With these the society can not increase existing customers premiums if claims or costs go against expectations.

The four main remaining Holloway societies are:
Holloway Friendly
Cirencester Friendly
British Friendly
Exeter Family Friendly (Merger between Pioneer & Exeter Friendly so more of a PMI provider now)

If you want to know more about the working of this type of policy give me a shout, if you want to know if it's right for you talk to your financial adviser.

Disclosure: I work for one of the above!

Ken Figenus

Original Poster:

5,678 posts

116 months

Sunday 12th October 2014
quotequote all
Dale - didn't get a PM mate - have checked any unfair spam folder too :-) TBH BFS looks best as the lump sum tax free at 60 blows others into the weeds and may get me a jetski and a big fast bike ;-) Very predictable, transparent(and affordable) premium escalations to age 60 too.

Tallboy thanks for the info - really appreciated to have it all confirmed.

Cheers

dalenorth

821 posts

166 months

Sunday 12th October 2014
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Hi Ken,

Sorry about the pm, I think there have been a few errors on ph recently. Can you try and pm me as a test please?

Ken Figenus

Original Poster:

5,678 posts

116 months

Tuesday 4th November 2014
quotequote all
Just to close, by far the best option was increasing the British Friendly Society sub. Wiltshire were a joke with initial big chunk fees and ongoing sub's to 3d parties even when dealing direct and with little capital building up either in comparison.