Income Protection - Help Please!

MrsCatLover

I have been insured with British Insurance. I now want to cancel because they will only pay me 50% of my income in the event of sickness, redundancy or illness.
My current outgoings i.e. bills is 70% of my income. This does not include Petrol, Food or living. Just my mortgage, council tax, water, tv license, home insurance, gas, electric and broadband. I have done the money makeover and have saved money on all my outgoings within the last six months therefore these cannot be reduced.
Does anyone know where I can be insured for up to 70% of my income so I can cover all my bills if the worst happens.
Where would I get the money for food shopping? Would I be entitled to jobseekers allowance if I have a insurance policy? I have worked full time since the age of 18, I am now 30.
Any advice would be welcome, particulary from people in the same financial situation as me. I.e have outgoings at a simialr percentage to income.
Thank - you.

dunstonh

Does anyone know where I can be insured for up to 70% of my income so I can cover all my bills if the worst happens.

66% is the typical maximum as the Govt do not allow you to protect 100% of your income. However, the payments are largely similar as you dont pay tax and NI on income protection.

Where would I get the money for food shopping?

You budget accordingly and if necessary use your personal savings/emergency fund.

Would I be entitled to jobseekers allowance if I have a insurance policy?

Depends on how it is paid. However, most people only get contribution based jobseekers and thats a pittance. You can barely fill a car with petrol on that.

Any advice would be welcome, particulary from people in the same financial situation as me. I.e have outgoings at a simialr percentage to income.

Take a look in the debt free wannnabee section if you feel you are not able to live within your means. Some very good people in there with some very good ideas to help out.

ACG

Depending on your income you will struggle to find 70%.
Friends Provident offer upto 70% but thats only upto the first £10k of cover. They will then cover 60% of the next £20k - £19k of the first £30k, is just under 66%. If your on less than £30k then it will be closer to the 70%.

I didnt realise it was the government who stopped you covering 100% of your earnings? I thought it was the insurance companies as this then gives you the incentive to go back to work.
Also you asked about if you would be able to claim anything at the same time as Income Protection, Life offices when paying out usually check to see if you are claiming anything and if so reduce the amount they pay out accordingly.