Cirencester friendly income protection a question?

Funkyfarmgirl

MY husband has a income assured policy with the above company he has had it since 2001 and never claimed on it. He pays 53 pound a month on it hes self employed our morgage is paid and our kids in their early 20`s. hes just had a small accident and were in the middle of claimin off this for the first time, and have been told we can get a max of £140 a week for were exspecting about 200 quid.
As my husband has now turned 50 and this policy will go up in price again im wonderin is it better to put tht 53 pound a month intoa building society incase we need it for accident or sickness or are we just taking a risk to cancel it as paying 53 a month into something and geting maybe 200 out.........wot is everyone views on this...to carry on incase of anything happens or cash it in and save in building society??????????? just wondered wot everyoen views are?

dunstonh

hes just had a small accident and were in the middle of claimin off this for the first time, and have been told we can get a max of £140 a week for were exspecting about 200 quid.

You should get paid whatever the sum assured was set to. Why did you think it was £200 and they are only paying £140?

im wonderin is it better to put tht 53 pound a month intoa building society incase we need it for accident or sickness or are we just taking a risk to cancel it as paying 53 a month into something and geting maybe 200 out.

only time will tell. You have insurance to cover you if something may happen. It is impossible to say what is going to happen. If your husband suffers no future claimable events then saving the money would be best. If he does suffer a claimable event then having the insurance would be best.

Funkyfarmgirl

Hes been off 2 weeks with this injury and maybe might gt £200 policy says up to £140 a week.

dunstonh

This doesnt sound like a conventional income protection policy as they wouldn't typically pay out until at least 1-3 months off work. This sounds more like a cash or accident plan (or hybrid plan with alternative features that are non standard). These tend to pay out much smaller amounts and for smaller periods. If it is, then I am not a fan of these as they tend to be ineffective when you really need them. If its not, then it may be worth keeping.

Funkyfarmgirl

yes they will pay if your off longer.......if its in their conditions just hub was off for 2 weeks

AndyBR_2

I have one of these and it is income protection. The cirencester can pay out from the first day you are off - not many companies seemed to do this and i was going to have this but it is a bit more expensive, so I went for the option which pays from 4 weeks but have got the accident option from the first day, which means if i have an accident (highly likely in my field!) i can start getting benefit from the first day, but if i am just ill, i won't get paid for 4 weeks - but i can probably manage on that and work through it. Can you remember what deferred period you selected when you bought the policy? I am a fan of these because even if i put a certain amount by every month in savings, if i end up being really ill and off work for almost the rest of my working life, this policy will pay 60% of my income, whereas I wouldn't be able to save enough to live off. Not sure why you think you should get £200? Has your husbands earnings dropped since 2001? Good lcuk!

headcase

I'm an IFA. I sell this plans as well as deal with the claims. Cirencester is good for persons in high risk occupations who want some form of illness cover. The policy was set up in 2001 for a weekly benefit of £140 tax free. The policy can pay out after 1 day, 7 days, 4 weeks, 13 weeks etc depending on when you took it out. It will pay out until you return to work or to the end of the policy - so unlimited time period. Normally the insurance companies requiest a sick note or a doctors, consultants notes ( if in hosiptal ) to prove you are off work. Also all permenent health insurance compan ies require prove pf earnings at the time of illness. ( not all companines require this ). Your partners earnings may of decreased over time hence £140 not £200 pw. Hence, I always review clients earnings each year - for this reason. No point in paying if over or under insured. Also ' Holloway ' type of plans are reviewable each 5 years. ie premiums increase. My view is some cover is better than no cover. PS this types of polices do pay out for accidents, sicknesses. I've had dozens of claims and all paid out. Only issue with some was the earnings. They do pay out weeks, months etc.

Funkyfarmgirl

AndyBR wrote: »

I have one of these and it is income protection. The cirencester can pay out from the first day you are off - not many companies seemed to do this and i was going to have this but it is a bit more expensive, so I went for the option which pays from 4 weeks but have got the accident option from the first day, which means if i have an accident (highly likely in my field!) i can start getting benefit from the first day, but if i am just ill, i won't get paid for 4 weeks - but i can probably manage on that and work through it. Can you remember what deferred period you selected when you bought the policy? I am a fan of these because even if i put a certain amount by every month in savings, if i end up being really ill and off work for almost the rest of my working life, this policy will pay 60% of my income, whereas I wouldn't be able to save enough to live off. Not sure why you think you should get £200? Has your husbands earnings dropped since 2001? Good lcuk!

the policy says you will be paid out up to !40 pound a week , and my husband been off for 2 weeks so im plannin on it being about 200 pound........which is no where near a grand which he lost by not working.

Funkyfarmgirl

headcase wrote: »

I'm an IFA. I sell this plans as well as deal with the claims. Cirencester is good for persons in high risk occupations who want some form of illness cover. The policy was set up in 2001 for a weekly benefit of £140 tax free. The policy can pay out after 1 day, 7 days, 4 weeks, 13 weeks etc depending on when you took it out. It will pay out until you return to work or to the end of the policy - so unlimited time period. Normally the insurance companies requiest a sick note or a doctors, consultants notes ( if in hosiptal ) to prove you are off work. Also all permenent health insurance compan ies require prove pf earnings at the time of illness. ( not all companines require this ). Your partners earnings may of decreased over time hence £140 not £200 pw. Hence, I always review clients earnings each year - for this reason. No point in paying if over or under insured. Also ' Holloway ' type of plans are reviewable each 5 years. ie premiums increase. My view is some cover is better than no cover. PS this types of polices do pay out for accidents, sicknesses. I've had dozens of claims and all paid out. Only issue with some was the earnings. They do pay out weeks, months etc.

Would your view be not to cancel it..............just i think if we put that £53 a month, and this will go up in jan 2011, it would soon add up over 12 months........i suppose its a gamble you either risk it and not have the insurance and stick the money in an account or you carry on just incase.