Income protection advice

StamfordGrrr

Hi, I'm new to the MSE forum... hope someone can give some advice & tips. I recently had to have 9 months off work due to an accident & it financially crippled me. Therefore I'm being told to purchase some income sickness insurance. Anyone help? Many Thanks

kingstreet

Look for Permanent Health Insurance.

Choose only "own occupation" basis and it will pay a tax-free benefit following the chosen waiting period if unable to work due to disability until you are fit enough to return to work, or the end of the chosen policy term (which can be retirement) whichever is the shorter.

Avoid limited payment plans and "work tasks" or "suited occupation" where it is more difficult to claim. These may be cheaper, but prove a lot more expensive in the long run.

ACG

I echo Kingstreets comments.

I cant believe how few people have income protection! Even £20 a month can make a huge difference should you have to claim.

InsideInsurance

Income Protection comes in two flavours, both have been mentioned above

PHI is the full fat product and most importantly it pays out until a predefined date (normally your 65th birthday)

ASU is a budget product and pays out for 12 months (a few do 24). Its much cheaper but evidently false economy if you have a serious injury/ illness and can never work again.

As PHI is underwritten at time of sale, rather than claim as per ASU, it is almost exclusively sold via intermediaries like IFA or brokers rather than direct to consumer. Make an appointment, have a chat and they'll advise you the ones best suited to you and give you indicative prices