Payment Protection/Income Protection Insurance

john10001

Can anyone recommend any companies not tied to banks etc that offer good rates for Payment Protection and/or Income Protection Insurance to cover all your debtors and liabilities etc such as credit cards, bank loans, income etc all on one policy instead of paying each one individually and paying much more? It could be one Payment Protection policy and one Income Protection policy, that would also work for me but I guess Income Protection would cover all that. I do not own my own home I rent so need enough money to cover that, living costs, travel costs, and paying off my debts otherwise I will be up a creek without a paddle.

I've never had any such policy previously but believe that in my situation it would be highly advantageous in economically difficult times. The industry I am employed in has been stable and doing well for many years but that is all the reason why I am now interested in looking for such a policy because I don't know what is around the corner or whether that would remain the same forever.

Thanks for any recommendations,

John

Underwriter

Income protection is usually based on a multiple of your income, typically 50 - 75% (as it's tax free so the net amount should be about the same) rather than your outgoings.

I'm not aware of any providers that sell it direct, you really need to speak to an IFA so they can explain how the product works, as it can be quite complex. They should also be able to provide quotes from different companies as premiums can vary quite dramatically.

I can't post a link because I'm new here but there is a website called "unbiased" which is a .co.uk site rather than a .com which will help you find an IFA.

WombleSW20_2

It will depend what you are looking for. Typical advice would to look for a long term income protection product Underwriter has suggested covering accident or sickness but this typoically doesn't include unemployment cover. Alternatively you could go for a short term income replace (STIR) policy which can include unemplyment cover. There are pros and cons for each and best to find a good IFA who will help you choose the best product for your needs. Make sure it's an independent financial advisor - not just a financial advisor. Use word of mouth to find one if you can. They shouldn't charge you as their commission will be paid by the insurer.

ACG

There is no contract that will pay off all of your bills - your bills are never identical month on month so it would be hard to insure against.

Income Protection is something that will pay you a percentage of your income. This gets paid to you, you then decide what to spend that money on. I would definately recommend an IFA here as there are a lot of options on this.
Making sure your not over insured (no point paying for something you cant claim on)
Do you go for increasing cover or level.
Ceasing age,
own occupation or any occupation (one will pay if you are unable to do your own occupation, the other will pay if your unable to do ANY occupation - eg it would only pay if you can not do any relevant job in the world, this could be admin even if previously you were a solicitor).

Defo recommend an IFA for this product.

Its good to see people are actually thinking of this product though, without it having to be "sold".
If you are having any problems give me a shout, id be happy to put you in touch with a respectable advisor.