illness/income protection insurance

metalgal

Asking on behalf of my sister.

She has a medical condition which means that any day now she could have to leave work or be off for a very long time. she has just started a new job and if she were to fall ill she would only get ssp. she has asked me to look into some sort of insurance policy in case she has to go off sick for a long time or leave work altogether.

as she has this condition and wants cover for this condition will these mean very high prices? also any advise between choosing income protection insurance and critical illness cover? what would be the best way to find a policy?

tia :beer:

dunstonh

Permanent health insurance (PHI) is the main type of income protection. It is underwritten at point of sale so you know from the start if the terms of acceptance and dont have to wait until a claim to find out (like PPI).

also any advise between choosing income protection insurance and critical illness cover?

They do different things and have very little overlap. So, its rarely a case of picking between the two but having both if you want full protection.

what would be the best way to find a policy?

any local IFA. There is very little coverage of PHI on the internet. Most quote sites prefer PPI as its quicker for them to sell and more profitable. Plus, many of the PHI providers wont let their product appear on a quote site.

Cautious_Investor_3

metalgal wrote: »

Asking on behalf of my sister.

She has a medical condition which means that any day now she could have to leave work or be off for a very long time. she has just started a new job and if she were to fall ill she would only get ssp. she has asked me to look into some sort of insurance policy in case she has to go off sick for a long time or leave work altogether.

Hi

It is unlikely that if a condition is serious enough to warrant a period of time off work your sister will be able to obtain insurance for it, most providers of income replacement (also known as PHI) or critical illness cover will exclude pre existing conditions.

With regard to PHI v Critical Illness I agree with dunstonh the polices are very different. Ideally both should be taken out, however this is not always affordable.

I'd further agree that the best thing to do is take advice from a reputable local IFA, one can be found by Googling unbiased (.co.uk), they will be able to advise your sister on the differences between the various forms of cover and also ask the insurer's underwriters what view they would take on her existing condition, speaking with underwriters can save a lot of time and will help to manage your sisters expectations.

I hope this helps.

Tha Cautious Investor