Income Protection & Mortgage Protection

weighty1_2

kingstreet wrote: »

I've just done a quick quote to see the difference and TBH there wasn't much.

PHI - £1,250 per month for 25 years with 4 wks deferred, class 4 = £68.39

or

A&S - £1,250 per month for twelve months with 4 wks deferred = £28.99
+
PHI - £1,250 per month for 25 years with 52 wks deferred, class 4 = £34.61

These are Scot Prov/Paymentshield figures. They were the quickest to get to on my computer.

One thing worth considering is the terms being offered, very few companies will offer class 4 occupation on an Own Occ. basis. A cheaper quote for a Working Tasks definition policy is almost worthless in comparison to an Own Occ. plan. Own Occ for class 4 occupations tend to be limited to the Friendly Societies, Friends Provident and L&G (for the first 12-months of the plan).

As you say, there is no legal limit, just a limit on the level of cover allowed by the insurance providers. At least one provider (Unum) have an Activities of Daily Living PHI plan which allows up to £24k benefit per annum irrespective of earned income level