Payment protection - is it worth it?

FirstTimer4Me

I'm hoping someone can point me in the right direction as I don't fully understand insurance policies.

me & OH both have individual life insurance policies which pay's out should either 1 of us dye or develop a terminal illness, what I'm looking for now is a policy that covers me & my partners outgoings in the event of either 1 of us not receiving a full salary, I need to cover Mortgage, electric, water, phone, etc,. etc,. I'm confused what kind of policy I need

I've looked at critical illness cover but it looks way expensive and I'm not sure if we can remember every illness we've ever had.

dunstonh

permanent health insurance is what you describe.

FirstTimer4Me

ta, but I'm confused is that what we need?

dunstonh

what you need and what you are want are probably two different things. Most people dont take out what they need.

permanent health insurance is fully underwritten at point of sale income protection. It is the best type of income protection, although it comes in different levels of cover. That appears to match what you say you want.

FirstTimer4Me

dunstonh wrote: »

That appears to match what you say you want.

Ok cheers this is where I'm getting confused because when I look on comparsion sites all I can see is payment protect or mortgage protection

*sorry if I'm sounding stupid*

TEDDYRUKSPIN

FirstTimer4Me wrote: »

I'm hoping someone can point me in the right direction as I don't fully understand insurance policies.

me & OH both have individual life insurance policies which pay's out should either 1 of us dye or develop a terminal illness, what I'm looking for now is a policy that covers me & my partners outgoings in the event of either 1 of us not receiving a full salary, I need to cover Mortgage, electric, water, phone, etc,. etc,. I'm confused what kind of policy I need

.

A good washing machine with oxygen granules may help. Only joking.

Dunstonh is correct but please remember that all these products are actually regulated, specifically permanent health insurance. They must be purchased via an financial advisor. The one's on the net, purchased via a website, are actually ASU (accident sickness and unemployment) insurance and are not the same thing!!!!!


If you are seriously looking for something to prevent DYES. I suggest not to mix your dark clothings with your whites.

_Andy_

In addition to Teddy's wise advice about laundry, I'd suggest speaking an independent adviser who can get a through idea of your needs, then explain all the different policies to you, and organise them if you're happy with them.

FirstTimer4Me

cheers for the replies, now I've finished DYING my stuff :eek: I have a question

TEDDYRUKSPIN wrote: »

specifically permanent health insurance, or ASU (accident sickness and unemployment) insurance and are not the same thing!!!!!

This is where I'm confused and don't understand the difference.

dunstonh

permanent health insurance is underwritten at point of sale and is the best form of income protection. The other types (typically the ones you see on internet sites) are payment protection versions of income protection. They have shorter claim periods and are not underwritten at point of sale but at point of claim. They are classed as a budget option and have a far lower successful claims rate due to the claims requirements being harder to qualify for normally.

Many payment protection companies have started calling their plans income protection but you should really consider that just a marketing name and not really true income protection which really ought to be reserved for PHI.

FirstTimer4Me

thanks for that I'll go back to the IFA I dealt with some years ago and seek their advice.