Income protection Insurance..worth it or waste of money??

PrincessJR

Hi,

Myself and my partner are considering getting income protection.

Nearly all policies state that there is a 60 day 'waiting' period between when you claim and when you begin to be paid. This has got us thinking that maybe it is not that useful to have? After all, if you have to wait at least 2 months to recieve benefit, what happens during those 2 months?? Financial problems!

We have been quoted approx £20 per month each to cover £700 each per month (75% of salary).

I would assume that within 2 months (60 days) we would have found SOME kind of work, if not another full time job. My partner is more at risk than me as I work for Local Authority and he is a graphic Designer for a smaller company.

We could really do without an extra £40 per month leaving our account, as things are tight enough, but should we get some cover?

Some advice would be appreciated.

OshayAway

Hi PrincessJR, it sounds like you may be talking about unemployment cover? In which case it is possible to get 'back to day one' cover that starts to pay at day 30 but backdates from your rendundancy / unemployment.

dunstonh

Insurance is always a waste of money until you come to claim and then its a life saver.

You are currently looking at payment protection plans so full income protection doesnt seem to be a concern to you. You also have to consider if payment protection is even suitable for you whereas a permanent health insurance would be better which could fit in with your employer benefits.

somewhatnew

Hi PrincessJR

Your post confuses me (sorry!)

Income protection pays you out if you are off work ill and you can set the deferred period, depending on the company, anywhere from 1 day to 2 years typically.

Unemployment cover is more fixed, normally paying out after 30, 60, 90 days or longer depending on the contract. As OshayAway mentions it is possibly to get the policies backdated to day 1 in the event of a claim (depending on how much you want to pay). If you cant find what suits your needs have you considered talking to a specialist insurance broker (find them through google)? They will have access to a variety of plans and should be able to find something to suit your needs without any problems .

The trigger for Unemployment cover normally to pay out (check this on the contract) is for a person to be in receipt of Job Seekers Allowance. You normally have 13 weeks grace from the Job Centre Plus to find an occupation before they start pushing things on you. If you were to take any employment, even part time, then you would loose the JSA and often then the Unemployment benefit..

If you feel that £40 a month is more than you want to pay how about just taking cover out on your partner if your job is safe at the moment?

Regards