Healthcare Income Plan when unemployed.

BENSONDOG

Hi

I was made redundant yesterday and am currently cutting back on my outgoings. For the last 10 years I`ve had a Healthcare Income plan with AXA Equity and Law.

The current payments is £53 a month for which I would receive £27 000 a year after 6 months if I was seriously ill. I`m currently 51 and the plan has another 9 years to run , until my 60th birthday. If it runs the full term I get some of the investment back.

I`m not sure if I will be wasting my money if I carry on contributing to it with a limited income. Fortunately or unfortunately I have never had any issues with my health so have had no need to make any claims
Any advice gratefully received.
Thanks
Nick

dmg24

Only you can decide whether it is worthwhile to keep or not. I'm not sure what you want people to tell you?

sunday

Cutting back on insurance is one of the scary things when your income is cut significantly. I think the only answer really is to do some cash flow forcasts for yourself - what your financial situation will be given various lengths of unemployment. Then make plans accordingly. You might find for instance that you could cover it if you were out for 3 months, but unless a start date was on the table at that point, you cancel it then. Maybe you could stretch if to a year... You'll just have to get everything out and work it all out (and you might find that "savings" from a redundancy pay-out will preclude you from receiving certain benefits, so paying off debts/mortgage/a year's worth of insurance might be worth considering - but double check with welfare rights people that those payments won't count against you). I have friends who for a couple of years didn't insure their house (!!!) because the money didn't stretch to ANY insurance. Thankfully finances improved, the house didn't burn down, and they're insured now. But, let's face it, anyone living on benefits alone are likely to have to rely on the state for insurance (and that won't cover their house, or health).