Income protection/Critical illness..

dunstonh

Im quite happy with the Essential Earnings Cover they've quoted

Really? I think the terms are awful and probably not worth the money you are paying.

I can't find any other income protection policies that are any cheaper/longer..

Most proper income protection plans go longer. The budget plans are shorter and tend to have so many restrictions that the chances are claiming are so low that the premium isnt worth it.

However, the critical illness does seem quite expensive. Its around £60 a month for both of us, paying out £50k, the cover is for 40 years.

First of all, buying from a bank would add to the price but you would expect a critical illness policy to cost more as statistically you are more likely to claim on it than the £10 budget plan.

I dont really have time to see an IFA,

You made time for the bank though? Most of the income protection policies are only available via IFAs as they dominate the market and the distribution focuses on them. Plus, comparison sites tend to prefer payment protection plans instead of income protection plans (yet some of the payment protection plans pretend they are income protection). So, if you are not going to use an IFA you will not get quality income protection.

Critical illness cover is more widely available on comparison sites with most of the mainstream providers being available. However, as it is a regulated product and that makes advice on it regulated, we dont tell you which is better. Although it is fair to say that a 23 illness plan is at the wrong end of the scale for quality.

HoneyAndLemon

dunstonh wrote: »

Really? I think the terms are awful and probably not worth the money you are paying.



Most proper income protection plans go longer. The budget plans are shorter and tend to have so many restrictions that the chances are claiming are so low that the premium isnt worth it.



First of all, buying from a bank would add to the price but you would expect a critical illness policy to cost more as statistically you are more likely to claim on it than the £10 budget plan.



You made time for the bank though? Most of the income protection policies are only available via IFAs as they dominate the market and the distribution focuses on them. Plus, comparison sites tend to prefer payment protection plans instead of income protection plans (yet some of the payment protection plans pretend they are income protection). So, if you are not going to use an IFA you will not get quality income protection.

Critical illness cover is more widely available on comparison sites with most of the mainstream providers being available. However, as it is a regulated product and that makes advice on it regulated, we dont tell you which is better. Although it is fair to say that a 23 illness plan is at the wrong end of the scale for quality.

Sorry when I said I dont have time, I have the time to go by myself and get my own cover, as I get 1 weekday off every 2 weeks, however my partner works Mon-Fri every week, and doesn't have time off until August.

So you reckon I should cancel the whole lot then? I wouldn't know where to start on my own.

rs65

HoneyAndLemon wrote: »

I wouldn't know where to start on my own.

Please don't take offence but it doesn't sound like you could do it on your own - you need to see an IFA. Find one on unbiased.co.uk and see if someone will spare you an hour one evening.

ACG

Do you have an hour in an evening free or a saturday?

I see most of my clients in the evening, ive done the odd saturday appointment (i try not to but sometimes there are no alternatives).

You probably wont get a proper income protection plan for £10 a month, but the money you will save on Critical illness will pay for the better Income Protection plan.

Unbiased, google, freeindex will all allow you to find a mortgage or financial advisor who can both help.

HoneyAndLemon

I can find the time, its just getting the OH sorted too that the issue. I will try and get it cancelled and make an appointment with an IFA. Thanks for the input. At 23 I'm wondering if I'm still too young for all this caper.

ACG

Ask a 23 year old Fabrice Muamba (Bolton player who collapsed on pitch against tottenham earlier this year).
http://www.bbc.co.uk/sport/0/football/17417973

Roque - 23 year old ex liverpool player died of cancer this week:
http://www.bbc.co.uk/sport/0/football/18576519

Those are famous people who have thousands of pounds and the very best medical staff.

HoneyAndLemon

I know I know, thats why Im looking into it! I just meant most of my mates are still in the 'go out and get blocked' phase. Im thinking ahead, its just a bit overwhelming!

ACG

I dont blame you, when i was 23 i worked for a life office so knew of the products but never bothered with them.

My money went on beer and kebabs. 4 years down the line it still goes on beer and take aways but i do now pay for Income Protection (the proper policy though, not the limited benefit one). Admittedly i dont have life insurance because i have no kids and my gf is young enough to move on and start a new life without relying on a lump sum...infact it would probably give her a reason to do me in lol :-P

Your thinking about it, which is all anyone can ask. But if your paying money you may as well get the best you can for your budget. If you dont want to spend £50 a month...dont! Work to a budget. I only have £1000 a month income protection cover because that would be enough to keep my head above the water.