Income protection

[Butter Face]

I’ve been considering recently getting some form of income protection insurance.

Is there anything in particular I should be looking for? I’d be wanting around £3k pm cover and a minimal wait time I presume but not sure what else I should be looking for?

Any tips appreciated!

[dalenorth]

Ensure you get own occupation and avoid the 12/24 short payment periods, unless full cover is too expensive for you.

We’ve helped loads of Phrs with their cover if you want any quotes just pm me?

[Sarnie]

Butter Face said:

I’ve been considering recently getting some form of income protection insurance.

Is there anything in particular I should be looking for? I’d be wanting around £3k pm cover and a minimal wait time I presume but not sure what else I should be looking for?

Any tips appreciated!

If you are employed, what sick pay provisions do they provide?

[Butter Face]

Sarnie said:

If you are employed, what sick pay provisions do they provide?

SSP only. I am commission based so it would make a very significant difference to my income should I be off for any length of time.

Dale, got your email, will reply later.

[Saleen836]

I have income protection and being self employed I'm glad I did, surprising how quite a few of guys on the site I was working said it was a pointless waste of money and asked if I had ever made a claim/how much I paid a month, and how much they had saved by not having it. I've been off work due to an accident for 11 months now and the premiums paid have been money well spent.

[Butter Face]

Good to hear Saleen (well, not good to hear about your accident but you know what I mean )! It does worry me if I were to be off for a long period of time!

I have looked and do get 5 weeks from work which is a good start but any longer would be an issue.

[Ted2]

Butter Face said:

I’ve been considering recently getting some form of income protection insurance.

Is there anything in particular I should be looking for? I’d be wanting around £3k pm cover and a minimal wait time I presume but not sure what else I should be looking for?

Any tips appreciated!

Excuse me if this seems like stating the blindingly obvious, but rather than dumping a monthly amount into an insurance policy where the money is essentially down the pan as you're unlikely to ever have to claim, why not simply put the same amount into personal savings account each month? If you ever need it, it's there - if you don't then you'll have amounted a sizeable stash to spend on something more useful.

In the distant past I did look at income protection insurance myself but when you read the T&Cs somewhere in the middle of page 87 you quickly discover that unless your situation meets some exact criteria where all the stars align and the moon is at a certain phase, you're not actually covered and they won't pay out. .. like all insurance policies then.

[Sarnie]

Saleen836 said:

I have income protection and being self employed I'm glad I did, surprising how quite a few of guys on the site I was working said it was a pointless waste of money and asked if I had ever made a claim/how much I paid a month, and how much they had saved by not having it. I've been off work due to an accident for 11 months now and the premiums paid have been money well spent.

Great post.............so many people I speak to think they are immortal. Stuff happens.............

[CoolHands]

Ted2 said:

Excuse me if this seems like stating the blindingly obvious, but rather than dumping a monthly amount into an insurance policy where the money is essentially down the pan as you're unlikely to ever have to claim, why not simply put the same amount into personal savings account each month? If you ever need it, it's there - if you don't then you'll have amounted a sizeable stash to spend on something more useful.
.

Because saving a monthly premium to equal 3k a month payout would be a bit difficult! I think that’s why insurance works...

[Butter Face]

CoolHands said:

Because saving a monthly premium to equal 3k a month payout would be a bit difficult! I think that’s why insurance works...

Well, yes, this.

I do put money away each month but although that would support me/my family for a short while, it would crucify us long term.

I saw a chap I went to school with die of cancer last year and he couldn't work, had no income protection and no life/critical illness. I won't let my family suffer if the same happened to me!

[Sarnie]

Butter Face said:

Well, yes, this.

I do put money away each month but although that would support me/my family for a short while, it would crucify us long term.

I saw a chap I went to school with die of cancer last year and he couldn't work, had no income protection and no life/critical illness. I won't let my family suffer if the same happened to me!

My Wife's sister passed away in February this year. Diagnosed in 2008..........was unable to work for the 9 years. Fortunately she had a CIC policy that cleared her mortgage and allowed her to live without fear of losing the house, no idea what she would have done otherwise. The house has no been sold, kids with their dad and they now have a £300k trust fund for when they are 25.

[Ted2]

CoolHands said:

Ted2 said:

Excuse me if this seems like stating the blindingly obvious, but rather than dumping a monthly amount into an insurance policy where the money is essentially down the pan as you're unlikely to ever have to claim, why not simply put the same amount into personal savings account each month? If you ever need it, it's there - if you don't then you'll have amounted a sizeable stash to spend on something more useful.
.

Because saving a monthly premium to equal 3k a month payout would be a bit difficult! I think that’s why insurance works...

An open-ended £3k a month payout is going to be a not insignificant wad of cash every month.

[Ginge R]

Slightly off topic. It's a nice marketing/data capture exercise, but useful too. Free Parent Life Cover from Aviva - a quick reminder.

https://www.aviva.co.uk/life/free-parent-life-cove...

[Sarnie]

Ted2 said:

An open-ended £3k a month payout is going to be a not insignificant wad of cash every month.

I just ran the figures making a few assumptions (car sales, 30 years old, £3kpm payment, 1 month deferred period, 25 year policy)

Circa £74pm.

The poster above has been off for 11 months. 11 x £3kpm as per the OP's requirements = £33k that would be paid out in total.

£33k / £74pm = 445 months it would take that person to save up the £33k needed to cover him for the period of time the poster above has been off work.

445 months = 37 years!

So....."just put the £74pm into a savings account" doesn't really cut it.

The whole point of insurance is to insure yourself to cover events that would be outside of your means to cover from your own sources........

[Saleen836]

Sarnie said:

Saleen836 said:

I have income protection and being self employed I'm glad I did, surprising how quite a few of guys on the site I was working said it was a pointless waste of money and asked if I had ever made a claim/how much I paid a month, and how much they had saved by not having it. I've been off work due to an accident for 11 months now and the premiums paid have been money well spent.

Great post.............so many people I speak to think they are immortal. Stuff happens.............

I can honestly say I would be screwed if I didn't have the insurance! all I have received (after 5 months) was an interim payment from the 3rd party for £1k, no other interim payment will be forth coming until a report is received from the specialist on the results of the MRI scan I had.

In reference to the comment of saving the monthly cost instead of paying the premium, even though I had the insurance running for at least 5 years before I claimed it will take me approx a further 30 years of premiums to pay back what I have received in payment. You get the same response when pet insurance is mentioned, at end of the day you don't take insurance you take the risk and in my case I'm glad I didn't take the risk.

[Grandad Gaz]

Off topic slightly but, if I were to claim on mine, how would they calculate the amount I would be entitled too?

I've been self employed for 30 years but because I work for mainly one international company, my income can vary quite dramatically from year to year.

I'm beginning to think I don't need income protection anymore. Children left home years ago and we have no debts at all. Also, I'll probably retire in the next year or two anyway.

Thanks

[dalenorth]

They would probably base it on the last two years earnings but it does differ between insurers. Who are you with?

[Grandad Gaz]

dalenorth said:

They would probably base it on the last two years earnings but it does differ between insurers. Who are you with?

Thanks, don't know who I am with TBH. It's something that was set up donkeys years ago.
I can't look it up either, we are in Norfolk for a few days at the moment!

[dalenorth]

Send me the details when you get chance if you’d like our opinion. It might be ridiculously cheap if you’ve had it donkeys so might be worth retaining.