Income Protection or Payment Protection insurance???

Frenc_Connection

Hi,

I have a mortgage and only got a life insurance but I am looking to get an insurance in case of accidents, sickness or unemployement.

I am very confused whether I should get an income protection or payment protection?!?

Does anybody know enough on this matter to advise me?

Thanks a lot

Jay

dunstonh

I am very confused whether I should get an income protection or payment protection?!?

permanent health insurance is the best form of income protection but it doesnt cover unemployment (although some do have an unemployment bolt on). You can can standalone unemployment cover or you can do both a PPI and a PHI (with 12 month deferment) to give you the best of both.

Does anybody know enough on this matter to advise me?

any local IFA.

big_Daddy_Dave

I was wondering, if you take income protection, how long do you have to wait before you are able to claim it?

if say you took it, then 3 weeks later had no job.

I hadnt even heard of it before today, I got an email from some comparison site.

and how long do they pay for.

Ive got a pretty good job im sur I wont lose it, but tis looks interesting

dunstonh

I was wondering, if you take income protection, how long do you have to wait before you are able to claim it?

PHI covers you from day 1. PPI will have a minimum period before you can claim usually. Somtimes 6 months or a complete refusal on any pre-existing condition or known event (if unemployment related).

big_Daddy_Dave

PHI is that for income protection? cant seem to work out what its an abbreviation of.

there must be a limit as to how long you cnan claim that no?

magpiecottage

big_Daddy_Dave wrote: »

PHI is that for income protection? cant seem to work out what its an abbreviation of.

there must be a limit as to how long you cnan claim that no?

PHI means permanent health insurance.

By permanent it means that it will remain in place for the remainder of the term agreed at outset.

Thus, for example, if you took out the policy at age 25 to run until you were 60 and fell so ill the next year that you could never work again it would continue paying until you were 60.

By contrast, PPI is a short term policy that would pay out for one or two years maximum.

rupertb_2

Mummyemmy was asking about the same type of cover earlier this week.

See - https://forums.moneysavingexpert.com/discussion/3127166