Is income protection insurance worth getting. Details inside.

BrettMorganxD

Just been looking at another thread and though to myself "though I live at home, I would hate to lose my job and have my wage drop all way from £1,000 a month to £200 a month (JSA).

So do you think income protection would be worth getting for me, and does anyone know where I could get a good policy?

The ones I am looking at say you must of been in employment for the last 6 months, I would ideally like one I could take out now (started 31/10/11 officially)

ACG

Are you talking about Redundancy cover or income protection in the event of sickness/ill health?

Im guessing its the first but just after clarification.

dunstonh

The ones I am looking at say you must of been in employment for the last 6 months

That sounds like payment protection rather than income protection. As ACG is asking above, we need to know which you are after.

BrettMorganxD

ACG wrote: »

Are you talking about Redundancy cover or income protection in the event of sickness/ill health?

Im guessing its the first but just after clarification.

income protection in the even of unemployment and ill health. (When I looked both unemployment and sickness where available in one package).

Coz I think it just might be worth getting anyone can get ill at anytime, what if I don;t pass my probhationary period (more than likley will but still) what if I get made redundant as you said

BrettMorganxD

dunstonh wrote: »

That sounds like payment protection rather than income protection. As ACG is asking above, we need to know which you are after.

I want the one which replaces some of your income every month for so long

ACG

OK, you have a few options:
ASU cover - Accident, Sickness and Unemployment insurance. It will only pay short term (12 or 24 months).
Standalone unemployment cover and seperate Income Protection - This will most likely be the most expensive way of doing it. (Unemployment cover will pay for 12-24 month and Income Protection will pay out until your selected retirement date).
A couple of companies will do combined unemployment and long term income protection - this is in my opinion the best of both worlds, its usually cheaper and offers you unemployment cover and long term sickness cover.

As for whether its worth you getting, well thats dependant on you. For instance i wouldnt expect a plumber to take unemployment cover as there is no shortage of work - but if you worked in the car industry then i would be inclined to promote that as it has its ups and downs.

BrettMorganxD

ACG wrote: »

OK, you have a few options:
ASU cover - Accident, Sickness and Unemployment insurance. It will only pay short term (12 or 24 months).
Standalone unemployment cover and seperate Income Protection - This will most likely be the most expensive way of doing it. (Unemployment cover will pay for 12-24 month and Income Protection will pay out until your selected retirement date).
A couple of companies will do combined unemployment and long term income protection - this is in my opinion the best of both worlds, its usually cheaper and offers you unemployment cover and long term sickness cover.

As for whether its worth you getting, well thats dependant on you. For instance i wouldnt expect a plumber to take unemployment cover as there is no shortage of work - but if you worked in the car industry then i would be inclined to promote that as it has its ups and downs.

Asu sounds best. Do you know any companys what would give it me from day one? Instead of having to wait a few months

ACG

I think paymentshield may do it.

Have a look at the Defaqto website. They will grade the companies 1-5 (5 being the best) if your going to get it, you may as well get a 4-5* company.

It will be more expensive to do it that way and living at home do you really need it? You will no doubt get redundancy money if your there atleast a year and if its sick pay your employer will give you some sick pay - so you can probably afford to leave it a month atleast?

BrettMorganxD

ACG wrote: »

I think paymentshield may do it.

Have a look at the Defaqto website. They will grade the companies 1-5 (5 being the best) if your going to get it, you may as well get a 4-5* company.

It will be more expensive to do it that way and living at home do you really need it? You will no doubt get redundancy money if your there atleast a year and if its sick pay your employer will give you some sick pay - so you can probably afford to leave it a month atleast?

Looked at payment shield it is also 6 month. What I will have to do is take it out exactly 6 month after (that is when my probhation ends anyway). so hopefully I pass my probhation than can just take it out straight after.

Just_Some_Guy

You are better off waiting to be honest. Getting a job and then immediately taking out income protection cover sets off all kinds of alarm bells (obvious fraud: get a job, get income protection insurance, "accidentally" fall off a ladder, £££). So even if you can find some schmuck to quote you it will be hella pricey.

ACG

Just_Some_Guy wrote: »

You are better off waiting to be honest. Getting a job and then immediately taking out income protection cover sets off all kinds of alarm bells (obvious fraud: get a job, get income protection insurance, "accidentally" fall off a ladder, £££). So even if you can find some schmuck to quote you it will be hella pricey.

WHAT?!??!?

Thats possibly the worst "advice" i have ever seen.

There are loads of companies that will quote for long term income protection. They dont just say oh you fell off a ladder...there you go mate theres £1000 a month.
On the flip side they could think, guy has a job, hes doing the repsponsible thing and insuring himself?

Who is to say the OP is going to make a claim 3 months after starting a policy?

Short term IP (which is what the OP is talking about) will only pay out for 12-24 months - who would be daft enough to potentially lose their job for a 2 year payout especially in the current climate?

Ignore that last post - complete rubbish!