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Income protection - is it necessary?

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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
20p Saver Club #33 60p/£100
Christmas Saving £0/£1300

Saving Target 2014 £25/£1000

Comments

  • Woby_Tide
    Woby_Tide Posts: 5,344 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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
    dunstonh Posts: 119,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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