Income Protection or Life Insurance?

adzy77

Hi,

Just spoke to the EA and she asked if I had sorted my income protection as if it was some sort of requirement? I assume its not as it was never mentioned before?

But anyway, whats the different between income protection and life insurance (mortgage only), is it purely IP will pay monthly during illness and LI is just for if the worst should happen?

Is it a case of taking one or the other? Income protection seems to be around £30/pm and life insurance around £10/pm for joint policy

ACG

They cover different things. One pays if you die, the other pays if you cant work due to illness.

You are more likely to claim on income protection than you are on life insurance (hence why it is more expensive). In my opinion the majority of people should have income protection... if you cant work, surviving on benefits is exactly that - surviving, its no way to live your life.

Life insurance if you have a partner or someone who would be worse off if you were to pass away then its probably worth looking at.

Its not compulsory to have either.

Elfbert

You don't have to have either.

HSBC gave me the hard sell when I got my mortgage - eventually I agreed to let them quote on it, just out of interest. They promptly refused me both anyway as I had pleurisy at the time! Told me to apply again once I'd been well for 6 months. Waste of time!

Anyway, I just spoke to my parents and I'm very fortunate that they offered to 'cover' me if I was off work with a serious illness - and I have no dependents, so if I died, they honestly wouldn't care what happened to my flat! So I've never had either form of cover.

However, now I'm sorting out a new mortgage deal and the broker is talking about it all again. Once again, I will see what deals there are to be had!

xx