permanent health insurance

Worried

I'm a bit confused with insurances for accident, sickness, incapacity etc. My IFA has given me quotes for two different products. One I can clearly see is MPPI, including unemployment where they pay out for a period of 12 months. The other is an Income protection plan with Friends Provident, which just covers accident, sickness until and I can choose when this ends, retirement, age 65 whatever. I am 28 non-smoker, in good health. The premium for this IPP is £19,85 a month. It is deffered for 12 months because I get good sick pay through my employer. Is this Permanent Health Insurance?

I would prefer to take out PHI over ASU, or MPPI, but as this only covers accident and sickness, what can I take out to cover me for unemployment? Are there any plans that you can take out for unemployment alone, or do they all come tied in with accident and sickness?

dunstonh

Is this Permanent Health Insurance?

Yes.

The IFA has recommended the popular way of doing this by using the ASU to cover the first 12 months and the PHI to kick in after 12 months.

You can get unemployment only cover and change the deferment of the PHI policy. I suggest you speak this through with IFA so he/she can give you revised figures.

Worried

I am happy with the deferment period on the PHI even without taking the ASU, as I get 6 months full pay, 6 months half pay for sick leave with my employer. Is unemployment cover alone expensive?

I was thinking of taking life and critical illness orginally, but would I be better off taking life without the CI and the PHI? I can't really afford it all! If I don't have critical illness cover and I get a critical illness and I'm unable to work will my repayments be covered under the PHI until the policy ends? Is the difference, just the mortgage doesn't get repayed if you get a crit illness under PHI?

What should I be looking out for with PHI?

drmjafri

after reading about various insurance I have also come to similar conclusion- take life assurance and PHI.