Illness/accident/redundancy protection

humptynumpty

I am looking at my illness/redundancy cover as I am going to change job and will be without a sick pay benefit (other than SSP).

I took out a couple of policies back in 1990 at the advice of an IFA which I have never really reviewed since then. I think I need to look at a new policy to replace them.

What I have is as follows:-

1: AXA Equite&Law Healthcare Income Plan, paying 34.75/month for a benefit of £15923/annum with a 26 week deferred period.
2: Gentworh (was Slater Hogg PPP), Mortgage Payment Protection Plan, paying app. £18/month, 60 day deferred period, £300/month benefit (nowhere near what I require).

Does anyone have any views/opinions of the above (I definately think I would be better ditching the Gentworth policy for something else), and can anyone recommend where to look for illness/accident/redundancy protection?

dunstonh

Number 1 is a PHI policy. That is full income protection.
Number 2 is a MPPI

PHI is the desirable option for income protection. Fully underwritten at point of sale and often with guaranteed premiums for the whole term and cannot be cancelled or changed by the insurer.

Kate22_2

Hello

I have just had a shock. Home from work to find the Post Office lifestyle policy I took out in Jan 09 for Redundancy and Sickness - £2500 a month or 60% of salary whichever is lower has been reduced to £1500 a month from May 6th but the premium has increased by £6.75 a month. In addition the previous deal was payment within 30 days of either sickness or redundancy and is now 60 days. I am fuming as I shopped around with care (I am the breadwinner in my house and if I get sick or lose my job, we are stuffed).

I had carefully shopped to see what would pay the most each month and have now ridden out the last 3 months to become eligable for the cover to find its reduced by £1000. Can this be right? Please be warned that what looks good today - can be changed tomorrow. They say in the letter that 'the recent difficulties in the financial markets and increased employment uncertainty make these changes unavoidable'.

Hopefully I will keep my job - but take care.

Kate

dunstonh

I had carefully shopped to see what would pay the most each month and have now ridden out the last 3 months to become eligable for the cover to find its reduced by £1000. Can this be right?

Yes. Budget payment protection plans are allowed to amend the terms.

Most have increased premiums to reflect the increased risk. That isnt really an issue as they lowered premiums in the good years to reflect the lower risk. So, fair game on that one.

However, some of the smaller providers in this field with aggressive pricing have also had to reduce their terms whilst the major players havent had to. Sometimes it does pay to look at quality and past record on these things.