'holloway' income protection

justtinw

Does any one know more about this type of income protection insurance?

I am looking to take income protection and apparently this type of policy also pays a tax free lump some at retirement, as well as providing skiness benefits etc.

Is it worth it? Roughly how much would one receive at retirement (obviously I know that this would depend on the individual policy), are we talking thousands, 10's of thousands?

an example of the type of policy can found the the exeter friendly website, but there are many others.

Shold I just choose ordinary cover with no cash benefit? Any suggestions of a good provider?

Appreciate your help...

kingstreet

I would discuss the options and how they best suit you with an Independent Financial Adviser.

ACG

I would echo the above.

There are pros and cons of a "normal" policy over the one you have mentioned but without knowing a lot more its difficult to say which is best. The policy you have mentioned is one i recommend in very few cases, it has its place but i dont think its ideal for the majority of people - you may fall into that category but you could do with discussing it with a broker to be sure.

weighty1_2

As you rightly state, Holloway plans combine an investment element alongside long term sickness benefits. These plans are typically provided by Friendly Societies and have age banded premiums. This means that whilst the cover can be extremely cost effective for younger clients it can become extremely expensive as you hit your late 40's and upwards.

Depending on your occupation it may be better to look for a plan which offers a fixed/guaranteed premium, although that is dependent on how long you intend to keep the plan running amongst other things. An illustration should show you what the potential return is at retirement, however, I'd expect the figure to be in the hundreds, possible low thousands and certainly not 10's of thousands.