Cancel Self Assurance or not ?

Edinburgh64

I currently have a Self Assurance policy through Scottish Provident. I pay £75.14 per month and this covers Disability income benefit. However I feel that the amount I pay is too much and that the monthly payment could be better spent. I have no dependants and really feel that the policy is not required. Any advise would be most welcome.

kingstreet

If it's for disability income benefit, it's protecting you against inability to work, due to accident or sickness. It pays a tax-free monthly income until you are fit enough to return to work, or until the plan ends.

It has nothing to do with dependents.

You actually have a decent plan with a decent chance of a claim if you cannot work. Hopefully, it is written on "own occupation" so you get a payout if "unable to follow the essential duties of your own occupation", rather then the cheaper plans with "suited occupation", or "activities of daily work" as the benchmark.

Scot Prov's SAM for DIB is rated with 4 stars by Defaqto, so it's towards the top end on quality;-

https://www.defaqto.com/star-ratings/income-protection

If looking for comparisons, ask an IFA to provide alternative quotes of similar quality and don't replace your quality cover with a cheaper option, unless you fully understand what you are giving up.

Edinburgh64

Thank you Kingstreet for your information. I did miss understand what sort of policy I have been paying into. For some reason I thought it was for Life Assurance and would only pay out if I die. I still feel that it is an expensive policy and might have a look at changing to an alternative.

kingstreet

SAM can include;-

life cover - level/decreasing/family income benefit
critical illness cover - mortgage and family protection
unemployment cover
disability income benefit/income protection.

Only you can say what your plan actually contains.

The amount of premium you mention is not indicative of what is actually included, as age, medical history and amount of cover also factor.