Income Protection Insurance-how much do you pay?

aliasojo

dunstonh wrote: »

The problem has come about as some of the payment protection companies decided to start calling their PPI plans income protection as PPI has now got a stigma attached to it.

If you want a PPI plan then that is fine. However, dont mix it up with proper income protection policies as they are worlds apart in quality and coverage. Dont fall for marketing by the PPI companies making out any different either.

I'm confused.

PPI = Payment Protection Insurance

I'm not wanting to cover specific things, I just want an income every month to pay bills until a new job is found or the time the policy applies for, is up.

I'm not looking for health cover or a specific bill to cover. I need an income to cover a set of circumstances that may change rapidly. (In the event of redundancy, we may keep both houses or give up the rented or sell the owned, it's very uncertain right now.)

What's a 'proper' income protection policy then?

Can you really spell it out for me please so I can understand better?

dunstonh

What's a 'proper' income protection policy then?

Permanent health insurance (PHI) is "proper" income protection. Medically underwritten at the start and will potentially pay out until your retirement should you have long term illness. Some have an unemployment bolt on.

Payment protection insurance (PPI) is what you are looking at. This is short term insurance. Not underwritten at point of sale but point of claim and only pays out of a short term (typically 1 year).

Credit-Crunched

InsideInsurance wrote: »

Because they have the miss perception that IP = PHI only and ASU is not a form of IP

It is not a mis conception and I fully understand the variances, please can you tell me the name of a company that offers IP with unemployment cover as part of the policy?

InsideInsurance

Re read what I said about you being confused

ASU = IP
AND
PHI = IP

I can provide you a list of ASU providers if you need them - but for example read the blurb on britishinsurance.com homepage which explains they provide short term IP for accident, sickness and unemployment

aliasojo

InsideInsurance wrote: »

I can provide you a list of ASU providers if you need them - but for example read the blurb on britishinsurance.com homepage which explains they provide short term IP for accident, sickness and unemployment

I was on their site yesterday, they were the most expensive for £1500 monthly income (shockingly so at over £100 imo). iProtect were the cheapest at £40+ less.

I'd be grateful for any other suggestions where to try?

Credit-Crunched

InsideInsurance wrote: »

Re read what I said about you being confused

ASU = IP
AND
PHI = IP

I can provide you a list of ASU providers if you need them - but for example read the blurb on britishinsurance.com homepage which explains they provide short term IP for accident, sickness and unemployment

I think we have some crossed wires here, I am saying that one can not obtain Unemployment cover that will have the same term as an underwritten IP policy. They are generally a maximum of 12 months, which places its in the ASU catergory, albeit a form of IP it is still much inferior to your underwritten longer term, same occupation policies

dunstonh

The PHI plans with unemployment bolt on only cover unemployment for 12 months typically. Effectively it is a PHI and unemployment only policy bolted together

Credit-Crunched

dunstonh wrote: »

The PHI plans with unemployment bolt on only cover unemployment for 12 months typically. Effectively it is a PHI and unemployment only policy bolted together

I think we are all arguing the same point here it appears.

When the OP stated that his main priority was unemployment cover, I tried to explain that they do not pay out as long as PHI does. (clearly i need to work on my clarity!)

aliasojo

Credit-Crunched wrote: »

When the OP stated that his main priority was unemployment cover, I tried to explain that they do not pay out as long as PHI does.

dunstonh wrote: »

The PHI plans with unemployment bolt on only cover unemployment for 12 months typically. Effectively it is a PHI and unemployment only policy bolted together

Forgive me but I'm confused again. :huh:

ASU pays out for 12months with regard to unemployment.

PHI with unemployment bolt on appears to be the same?