Your thoughts on short-term payment protection Insurance

xsupercarlx

I've been looking into this and it seems pretty good. Gives me peace of mind knowing I'll have upto 12 months of Income if I lost my job through no fault of my own or if I suffered injury.

What are your thoughts on this? I'm sure there are some companies who try not to pay out, I'm fully aware of such practices and I'm sure it happens with every type of insurance.

But generally, do you think this insurance is worth getting, especially if you have financial commitments?

cattie

Definitely worth taking out, especially if there is only your salary coming into the house. You just never know what is around the corner.

I took such a policy out years ago after splitting with my partner & buying a place on my own. Nearly a year down the line I found myself unable to work through ill health. I had no trouble with the insurance company paying my claim and the 12 monthly payments I received from the policy made all the difference to me being able to keep my head above the water with the mortgage repayments.

dunstonh

What are your thoughts on this?

Im not a fan of payment protection. I much prefer income protection (PHI). Often the cost say a 6 month deferment PHI is not too dissimilar to a PPI policy covering just 12 months income.

I'm sure there are some companies who try not to pay out, I'm fully aware of such practices and I'm sure it happens with every type of insurance.

The plans are not all equal and some will have clauses that others do not. Some of the budget plans in particular shave a lot off the cover.

xsupercarlx

Thanks guys, great answers, I will go with it then.

I was looking at the longer term Insurance but its not what I need right now and from my understanding, it didn't cover being made redundant, more not being able to work any more due to ill health.

I think 10 years down the line, I will definitely go for that one though.

Thanks again