Income protection - is it necessary?

brummiebabe

Hi

I currently have Income Protection with the Nationwide. It costs £30.70 per month and kicks in once my employer's sick pay finishes (NHS so good sickness pay package!)

I think I'm paying over the odds & wonder if its really necessary to have Income Protection? If it is, can I get it cheaper?

Any advice would be appreciated

Woby_Tide

certainly with Nationwide(and they've just put premiums up) it's over the odds. Have a look at Martins article on the main site, I just slashed my Nationwide cover by 60% a few months back with with www.helpupay.co.uk

dunstonh

Income protection comes in two forms. Accident Sickness and Unemployment (ASU) and premanent health Insurance (PHI).

ASU covers for 12 months only but includes unemployment. It can also be cancelled or changed by the insurer. PHI has a defined final date (most people stick it as retirement) and the initial deferment can be changed to match any employer sickness benefits. i.e. 6 months when company sick pay runs out. PHI cannot be altered or cancelled by the provider regardless of how long or how many times you claim. It will also pay out until the final date or when the sickness ends, whichever sooner (some have definitions which can alter that, i.e. budget plans). PHI does not include unemployment cover.

In an industry like yours where there is a shortage of manpower, then unemployment cover could be considered unneccessary. In which case a PHI may make better sense and be better value for money.