Income protection
Discussion
Chaps -
does anyone know of schemes that insure you to your full net salary level?
background is thus:
My wife is off on maternity in a couple of months, so due to us dropping down to one salary (well plus her package) and the current uncertainty in my industry (advertising) I'm keep to make sure we're well comvered in the event of redundancy.
Most of the schemes just seem to do mortgage payment + 25% for bills.
Are there any schemes that pay higher proportions?
Also - do these things actually pay out? not being hyper cynical but the t & c's on some policies seem to imply that they wont pay out in the event of unemployment if there is any element of probability that it may occur....
any advice /experience gladly recieved!
mods: feel free to move this to finance where no one will read it
does anyone know of schemes that insure you to your full net salary level?
background is thus:
My wife is off on maternity in a couple of months, so due to us dropping down to one salary (well plus her package) and the current uncertainty in my industry (advertising) I'm keep to make sure we're well comvered in the event of redundancy.
Most of the schemes just seem to do mortgage payment + 25% for bills.
Are there any schemes that pay higher proportions?
Also - do these things actually pay out? not being hyper cynical but the t & c's on some policies seem to imply that they wont pay out in the event of unemployment if there is any element of probability that it may occur....
any advice /experience gladly recieved!
mods: feel free to move this to finance where no one will read it
Are you talking income proetection, or Mortgage Patyment Protection(Also known as ASU) ?
If its the latter, a fair number of schemes have stopped accepting unemployment only applications and will only do full ASU. A number now have an exclusion period on them where the policy is void if you are made redundant. (90 Days seems to be the standard.)
Most have a limit of £2k monthly benefit, and will ask you to prove you are paying that amount out.
i.e if you had £2k of cover but monthly bills of £1100 you might not get the full cover amount.
In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
If its the latter, a fair number of schemes have stopped accepting unemployment only applications and will only do full ASU. A number now have an exclusion period on them where the policy is void if you are made redundant. (90 Days seems to be the standard.)
Most have a limit of £2k monthly benefit, and will ask you to prove you are paying that amount out.
i.e if you had £2k of cover but monthly bills of £1100 you might not get the full cover amount.
In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
scotal said:
Are you talking income proetection, or Mortgage Patyment Protection(Also known as ASU) ?
In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
income protection & accident sickness and UE insurance - are they different products then?In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
my firm on a global basis has made cuts, as has our holding company, but our division was unscathed...
not sure now this would affect the disclosure of knowledge of impending cuts
BERGS2 said:
scotal said:
Are you talking income proetection, or Mortgage Patyment Protection(Also known as ASU) ?
In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
income protection & accident sickness and UE insurance - are they different products then?In temr sof paying out, some of the firms are dreadful, whilst others are good providing the claim is good. In terms of knowing about redunadnciues its a case of if you have been told there might be losses at your firm, rather than "hey its a recession of course you'll get fired"
my firm on a global basis has made cuts, as has our holding company, but our division was unscathed...
not sure now this would affect the disclosure of knowledge of impending cuts
Oh and I have direct experience of PPI paying out. They arent all bad.
Edited by scotal on Wednesday 22 April 12:08
I have income protection insurance that covers 75% of my income should I be made redundant or unable to work through ill health. It's through ANT Insurance.
However, the premium trebled 6 months ago and I have had a letter today saying it has almost doubled again!!! I don't know whether to continue with it or not. Almost £60 per month from £10 ish originally!
However, the premium trebled 6 months ago and I have had a letter today saying it has almost doubled again!!! I don't know whether to continue with it or not. Almost £60 per month from £10 ish originally!
Gio G said:
Had a letter through my insurance people... my premium goes up to £106 a month, to cover £2,000 a month, unemployment cover only... So since 2007, when I took out the policy, my premium has gone up 266%!!!
Sounds like everyone is getting the same news...
guess thats just the current price to risk...Sounds like everyone is getting the same news...
I'd ideally like £3k of cover for UE & sickness - might seem a silly question but i assume that payments are net?
Gio G said:
I have got my IFA involved to find a better deal and weight the whole thing up..
All the firms i know of have done similar things witht heir rates recently. They are getting lots of claims, for obvious reasons.Oh and as per usual some firms are limiting the industries they will cover.
Alot of them have withdrawn unemployment only cover as well.
swerni said:
scotal said:
BERGS2 said:
I'd ideally like £3k of cover for UE & sickness - might seem a silly question but i assume that payments are net?
£3k is going to be a problem, but yes the payments are nett. The insurers will only cover a certain proportion of your monthly income. The maximum I could find anywhere was the post office £1500 plus 10% extra free.
That was a few months ago.
The cover I took out with the Abbey 2 months ago has just gone up by 40%
Edited by swerni on Friday 8th May 21:17
If its ASU then 2k is easy.
Just to clarify:
Income protection or Permanent health insurance (PHI)
Will pay out typically 75% of your SALARY if you are unable to work through an accident or sickness & will pay a monthly benefit until retirement age. It will NOT include redundancy. The cover is based on your occupation & you don't need a mortgage or loan payments to have it. It will not pay if you receive employer sick pay so will only start paying after your income stops. Its designed to give you an income for life if you are never going to be able to work again.
Payment protection insurance (formally accident, sickness & unemployment, ASU)
Will pay a monthly payment if you are unable to work through an accident, sickness or made redundant through no fault of your own. Its based typically on your MORTGAGE payments plus 25% if you wanted it & the payments will start usually from the 31st day. It will generally pay for 1 or 2 years then stop, whether your back to work or not. Designed to cover your mortgage payments & associated bills in the event of short term (1 or 2 years).
Little bits to watch out for, PHI is fully underwritten when you apply & in the event of a claim as long as its a qualifying claim & your disclosed all facts on the application the claim will be paid. With payment protection its underwritten at the time of the claim so if they discover when you applied you had heard there were redundancies happening they wont pay you a bean.
Also to claim for unemployment you have to be seeking alternative employment, applying to claim unemployment or job seekers allowance, made redundant through no fault of your own (so no voluntary redundant). I used to hate unemployment cover as there's to many get out clauses and most people would get another job in a couple of months however at this time its worth considering, just make sure you know exactly how it works. I see people all the time that have PHI & think it pays for unemployment.
Income protection or Permanent health insurance (PHI)
Will pay out typically 75% of your SALARY if you are unable to work through an accident or sickness & will pay a monthly benefit until retirement age. It will NOT include redundancy. The cover is based on your occupation & you don't need a mortgage or loan payments to have it. It will not pay if you receive employer sick pay so will only start paying after your income stops. Its designed to give you an income for life if you are never going to be able to work again.
Payment protection insurance (formally accident, sickness & unemployment, ASU)
Will pay a monthly payment if you are unable to work through an accident, sickness or made redundant through no fault of your own. Its based typically on your MORTGAGE payments plus 25% if you wanted it & the payments will start usually from the 31st day. It will generally pay for 1 or 2 years then stop, whether your back to work or not. Designed to cover your mortgage payments & associated bills in the event of short term (1 or 2 years).
Little bits to watch out for, PHI is fully underwritten when you apply & in the event of a claim as long as its a qualifying claim & your disclosed all facts on the application the claim will be paid. With payment protection its underwritten at the time of the claim so if they discover when you applied you had heard there were redundancies happening they wont pay you a bean.
Also to claim for unemployment you have to be seeking alternative employment, applying to claim unemployment or job seekers allowance, made redundant through no fault of your own (so no voluntary redundant). I used to hate unemployment cover as there's to many get out clauses and most people would get another job in a couple of months however at this time its worth considering, just make sure you know exactly how it works. I see people all the time that have PHI & think it pays for unemployment.
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