Income protection from i-cover

Bison71

I am interested in income protection and came across a product from i-cover. I run my own company, so that product would suite me well. I wonder if any of the other forum members have come across this company and wonder about the experience the had with them. (I am not seeking financial advice as I believe this would not be suitable for this forum.)

ACG

Ive never used i-cover.
With you being self employed im presuming your not looking to protect from redundancy?

If so, can i ask why your only looking at short term income protection? Would you not prefer a long term policy that would cover you until retirement?

I read some statistics that the average income protection claim is around 6-7 years. I-cover i suspect will pay out a maximum of 1-2 years.

dunstonh

I am interested in income protection and came across a product from i-cover.

That wont be income protection. It will be payment protection.

Most self employed people are better off with income protection using the permanent health insurance version (PHI) and not going with payment protection plans that market themselves as income protection.

Bison71

ACG and dunstonh,

Thank you both for your reply. I am indeed looking at long term cover, which for an example kicks in after 52 week (loss of work due to accidents etc.) and provides cover until retirement age. i-cover call their product income protection which lead me to believe it will provide long term cover, but it's only 12 months. Thanks for pointing this out to me. The search for a suitable product will continue ...

dunstonh

The way some payment protection plans have marketed themselves as income protection is not good in my opinion. They are just trying to muscle in on the PHI market and with PPI being an inferior product then it does hint at a lack of ethics.

ACG

If your looking online, as dunston has said search for PHI.

However, if you speak to a mortgage or financial advisor they have access to a LOT more companies. A lot of life offices only deal with advisors and not direct.

Bison71

Update - found a promising provider called drewberry. They offer a product for company directors. Their definition of earnings will include dividends.
I thought this info might help someone else trying to set up income protection.

weighty1_2

Bison71 wrote: »

Update - found a promising provider called drewberry. They offer a product for company directors. Their definition of earnings will include dividends.
I thought this info might help someone else trying to set up income protection.

Just to make you aware Drewberry are a broker not a provider so they simply source the provider for you.

In my experience most companies will allow you to take into account your dividends provided they are being taken from profits made in that year and not surpluses from past years.

Some providers will actually allow a spouse's income and dividends to be taken into account when they are paid purely for tax efficiency purposes and provide no income generating role within the business.

ACG

As Weighty says theyre not an actual life office.

I think all life offices will allow dividends...atleast all the ones i know of do anyway. They tend to allow a percentage of anything disclosed on your tax returns.

dunstonh

I think all life offices will allow dividends...atleast all the ones i know of do anyway.

With PHI, I would expect it from most, it not all. The PPI providers would have restrictions but we have already eliminated them.

Wutang_2

Bison71 wrote: »

Update - found a promising provider called drewberry. They offer a product for company directors. Their definition of earnings will include dividends.
I thought this info might help someone else trying to set up income protection.

It won't because you haven't.