Employment/Income protection ?

Wibble68

Hi all,

I was wondering if there is any section or advice section in Employment/Income Protection/Insurance where you pay a monthly figure, and then they cover you if made unemployed (or possibly sick).

I've been in a job for 7 years or so, hopefully long may it continue, but with the business not doing as well as it was, I'm trying to figure if I should be prudent and try and take some steps to help secure some time to get another job.

I've been on confused.com and can see there are some options and quotes (eg pay x/month and covers 12months half salary), but not quite sure if they are all for being made redundandant, or whether they are for sickness etc. I couldn't really see much on MSE ?

Any advice ?

dunstonh

I was wondering if there is any section or advice section in Employment/Income Protection/Insurance where you pay a monthly figure, and then they cover you if made unemployed (or possibly sick).

Advice on regulated products is a regulated activity and the site doesnt do that.

However, this section is as close as you will get for discussion (not advice)

There are two types of income protection
1 - PPI (payment protection insurance) - tends to be favoured by comparison sites due to low admin and higher profit. Effectively a budget option with limited payout period of typically 12 months.

2 - PHI (permanent health insurance) - rarely appears on comparison sites as it is still often a paper based application and a more complicated option given its more comprehensive coverage. Can payout until retirement and medically underwritten at point of sale. Does not cover redundancy but far superior on sickness.

Wibble68

Thanks dunstonh,

Do you know if PPI is typically for both redundancy and health (and other stuff), or does it just cover something specific ?

dunstonh

PPI is for both but for sickness it is just short term (upto 12 months mostly but a few less common ones will got for 24 months). it is is not underwritten at point of sale but at point of claim. So, pre-existing issues can cause a claim to be rejected.

The ideal scenario is to have PPI and PHI. The PHI could have a 12 month deferment to kick in when the PPI ends.

InsideInsurance

Wibble68 wrote: »

Thanks dunstonh,

Do you know if PPI is typically for both redundancy and health (and other stuff), or does it just cover something specific ?

Think dunstonh was trying to somewhat stir, and probably understandably so.

The budget version is "also" called ASU (accident, sickness and unemployment) but is probably best historically known when its tied to a loan or credit card when its called PPI

As the full product it will cover both redundancy and health however there is no option (of the providers I am aware of) to cover pre-existing conditions on the health side and likewise excludes redundancy if you knew about it prior to buying (and doesnt cover getting sacked for gross misconduct etc)

It is possible to split it and buy AS or U cover but pricing for either is very similar to the cost of full ASU product.

PHI is purely on the health side however some do offer the budget U from ASU as an add on. I am effectively self employed so unemployment cover is a non-starter for me so have never investigated how short term unemployment cover tied onto a PHI policy compares to a PHI policy and a standalone unemployment one.