Income protection

eneville1

I've never had income protection or anything along those lines.

Ideally, if I'm going to take this out, I'd like the current income that I'm getting to be fully protected. The rates I've seen on TescoCompare seem to only go as far as 50% of the income. Does anyone know how to find something that would cover the full income? I'm not looking to jack in my day job or anything, obviously it's not easy to find another job in the current climate!

Thanks

bengalknights

Usually the maximum most insurers will protect is upto £1500 a month so it might be difficult finding something higher unless you go to a specialist or broker

eneville1

I might go off on a rant about that. 1500 isn't really income protection if you plan to spend, say for example 2000 on a mortgage, how can that protect your mortgage payments?

zppp

bengalknights wrote: »

Usually the maximum most insurers will protect is upto £1500 a month so it might be difficult finding something higher unless you go to a specialist or broker

eneville1 wrote: »

I might go off on a rant about that. 1500 isn't really income protection if you plan to spend, say for example 2000 on a mortgage, how can that protect your mortgage payments?

I suggest you read the bit in bold.

Linda32

eneville1 wrote: »

I might go off on a rant about that. 1500 isn't really income protection if you plan to spend, say for example 2000 on a mortgage, how can that protect your mortgage payments?

I agree with the previous poster, to get that sort of cover you really do need a specialist, and the premiums will be very very high.

Mind you, 2000 is a very very high mortgage payment as well, so if thats your repayment, then you really do want that covering.

To give you an idea, my premium is £12.00 a month and I receive £412 a month, abit less that your looking at The figure is worked out at current mortgage costs, plus an extra 25% or something along those lines. I'm sure that gives you an idea.

Just something else you mentioned, they are very very unlikely to pay out if you "jack your job in", why should they?
Usually, its protection against redundancy and accident/sickness if you chose to take the accident part.

eneville1

Well, the main intention is to cover against all eventualities, for the entire sum that I earn. As I don't yet have a house I started to think about what I'd want to do to cover myself when I do buy.

Although, the more I think about it, the more I want to be covered for my rent payments too. Basically, how can I get covered for all eventualities for the entire salary. Since I'd have to pay for the cover, I'd want to be covered against everything. Car insurance has to cover against all events, so why not the same for income? Surely the costs for medical problems that arise from car accidents would be far greater than what I'm earning!

Linda32

eneville1 wrote: »

Well, the main intention is to cover against all eventualities, for the entire sum that I earn. As I don't yet have a house I started to think about what I'd want to do to cover myself when I do buy.

I know what you mean, that makes sense.

eneville1 wrote: »

Basically, how can I get covered for all eventualities for the entire salary. Since I'd have to pay for the cover, I'd want to be covered against everything. Car insurance has to cover against all events, so why not the same for income? Surely the costs for medical problems that arise from car accidents would be far greater than what I'm earning!

Thats true, it probably would, but now your in a different field of insurance. Possibly some form of Medical cover as well, maybe ask on the Insurance Board.

My Mortage Payment Protection Insurance is being paid out due to lose of employment due to redundancy, the payout is for 1 year, and during that time I have to prove I am looking for a job.
(I had to prove redundancy, by sending a copy of my P45, and signed forms from my ex employer)

They can and do make sure you are looking for a job, in the form of a log book which is issued by the Job Centre, this is where you enter your efforts to look for work. The Job Centre sign this off, and the insurance people ask for a copy.

Then, just to cover themselves even more, they ask for a form from the Job Centre, this form is filled in on a monthly basis and you can then send this form to any insurance provide who you have paid premiums too. Credit Card insurance for example, so that those repayment costs are covered.

HTH

JasX

the vast majority of insurers will cap you at 60-80% of income, maybe specialists will go above that but it'll be VERY expensive. plus if they find you had any reason to suspect you might see your income drop when taking out the policy they can happily pay you nothing

gadgeteer_2

I looked into this a couple of months ago as redundancy is probably the most likely thing which will happen to me. I've got life insurance and critical illness cover via my employer but chances of them being needed is way less than the chances of me getting made redundant. Esp. in the current economic climate.

I spoke to a few brokers and basically was told that most insurer's either pulled out of the market when the recession hit or had jacked their prices up a lot. Some jobs such as public sector were almost uninsurable too.

In the end the quotes I was getting were crazy. Between £65 - £100+ a month. For a policy which didn't pay out for the first 6 months of unemployment then only for 12 months. That was on about £1500 per month (IIRC). So after some thought I decided it was probably more better if I put the amount of premium aside instead and live off my savings if heaven forbid the worst happened.