ASU policy price increase

Nequila

Dear all,

We remortgaged 2 years ago and took out an income protection policy to pay out a fixed amount in the event of accident, sickness or unemployment. We have been paying £108.80pm for the past 2 years yet today receive a letter saying in light of the curremt economic climate this will be increased from 3rd April to £152.32.

This seems like an excessive increase, and quite frankly we're not happy to pay it but don't seem to have a choice. If we cancel and take out a new policy there will be a waiting period (which although I doubt very much we'll need the policy you never know!) so any words of wisdom would be greatly appreciated.

Thanks,

Nequila

dacouch

cba

http://forums.moneysavingexpert.com/showthread.html?t=1438805&highlight=payment+shield

dunstonh

This seems like an excessive increase

Didnt see anyone complaining when the decreases took place after the last recession ended.

so any words of wisdom would be greatly appreciated.

In the last recession rates of £6-7 per £100 of cover were very common. During the growth years it dropped to as low as £1-2. So, you should expect the premiums to rise when the risks increase. You can see the scale of the decrease and perhaps that indicates the potential for the increases.

_Andy_

Nequila wrote: »

D

This seems like an excessive increase,

Why? Do you not realise how many thousands of people have been losing their jobs recently and how many thousands of pounds insurers are having to pay out?
What would you suggest as an alternative? The insurers don't increase any premiums and then go under as they won't make enough profit?