No Protection in place: where to start?

planteria

is a 13 week deferred period for Income Protection standard:question:

planteria

just had a look at DG for IP:
for £300/week, deferred by 13 weeks, would cost £42.00/month.
to have as an escalating bond, where after 52 weeks the payment would increase 3%/year, would cost £50.40/month.

bgeeers

Hi can anybody recommend an insurance company that will insure a tourist on an international licence for three months here in the UK

weighty1_2

planteria wrote: »

From the 3 quotes I have it would look as though Income Protection from Friends Life with Life Insurance and Critical Illness Cover from HSBC would be my best value option.

seems strange that Friends Life are so competitive with the Income Protection but so much higher for Life Insurance and Critical Illness Cover.

From memory the HSBC "critical illness" cover....and i use that term loosely.....offers very sparce cover only including 5 conditions. Heart attack, stroke, cancer, MS and aorta graft surgery. The option from Friends Life cover around 40 conditions with a full payout and another half dozen partial payout conditions, depending on your gender. Whilst the HSBC plan covers the most frequently claimed on conditions you need to weigh up whether you want a plan which is comprehensive against a plan which is cheap.

planteria wrote: »

is a 13 week deferred period for Income Protection standard:question:

Not standard at all. Nearly all companies will offer a range of deferred periods depending on the applicants requirements. Some Friendly Societies offer "day 1" cover which can be claimed on following 3 days sickness but is then backdated to day 1 of the illness. Conversely, most providers offer up to a 12-month deferred period for those who receive long term sick pay or have significant savings set aside.

planteria

thank you weighty. all small print i need to study. i want to get this 'right'...not necessarily the cheapest, but good value.

first glance at Friendly Societies has given me wildly differing premium levels:think:

weighty1_2

Friendly Societies more often than not have "age banded" premiums. They increase either yearly, or ever 5-years depending on the provider. The philosophy behind this is that you are a risk not because of your occupation or smoking status but mainly because of your age.

Since few plans which are taken out are kept right through to the end of the term why should a client pay a premium which is priced based on an average risk over that full term. Age banded premiums are actually a very fair way of pricing a product.

The main problem with them is that they normally become very expensive when a client hits their 50's and beyond. Conversely, they are often much cheaper when a client is young. At the age of 38, depending on your occupation, you are probably getting to the point where there is little cost saving to be made, but the benefit would be from the very short deferred periods which can be offered.

Often my clients prefer a guaranteed premium but don't like an excessively long deferred period so in this instance we would look at a 1-month deferment option.

Options, options, options.....there's loads of them I'm afraid.

planteria

thank you again weighty, but would you mind explaining this part please..........

weighty1 wrote: »

At the age of 38, depending on your occupation, you are probably getting to the point where there is little cost saving to be made, but the benefit would be from the very short deferred periods which can be offered.

planteria

and i am a 'Company Director'.

weighty1_2

Basically, the premiums for most Friendly Society plans, when compared to the large PLC insurers are extremely cheap for clients in their 20's, especially if the applicant is in a more manual type occupation. However, whilst they start cheap they will still end up more expensive than the large insurers at some point before retirement. Often the cross over point when the Friendly Societies and PLC insurers are priced similarly is early 40's.

In regards to your occupation being a company director that would not be used for underwriting your occupation as you could be a company director of your own deep sea diving company or a director or an accountancy practice - completely different risk profiles, same job "title".

planteria

Ok, thank you. So, to 'take advantage' of a deal from a Friendly Society, I would be best to do so soon. Are we talking just Income Protection here, or LI and CIC too?

FriendsLife just wanted "Company Director", but I entirely see your point. I am Director of a Sales & Marketing Company.