Income Protection - Yes or No?

FIRSTTIMER

Hi,


I am interested in taking this out - any website recommendations - I earn around £30k and will be looking for around £1500 per month protection maybe. My company sick pay is 6 months full pay and 6 months half pay.


Advice Appreciated. Thanks.

dunstonh

any website recommendations

It has little internet coverage. Most comparison sites run the basic PPI version. Not the full fat PHI version which is mostly retailed via IFAs.

My company sick pay is 6 months full pay and 6 months half pay.

So, no point having the PPI version. A PHI version would be most suitable.

FIRSTTIMER

As in permanent health insurance - why this version? I have googled and come across moneysupermarket doing quotes as well as dewberry insurance

dunstonh

As in permanent health insurance - why this version?

As it is the main form of income protection. Although PHI comes in different levels which you could broadly categorise as budget, standard and comprehensive.

PHI trounces PPI in most areas.

I have googled and come across moneysupermarket doing quotes as well as dewberry insurance

I thought I would take a look and I found that moneysupermarket were quoting on PPI. Not PHI. Dewberry are doing what IFAs do.

stator

Dewbury can be a right pain, if you get a quote they will phone you up several times and ask annoying questions, it's hard to get rid of them and you end up haning up on them.

Most Income Protection policies are ASU and limited to 1 year.
PHI lasts longer but doesn't cover unemployment so you might combine it with IP.

dunstonh

Most Income Protection policies are ASU and limited to 1 year.

That is only a more recent trend. It is due to the comparison sites retailing PPI rather than PHI (PPI is a simpler application process and more profitable). PHI is mainly an intermediary product issued by IFAs in face to face meetings (although nothing stops them being done via post).

If there was any logic, PHI should dominate distribution over PPI.

FIRSTTIMER

thanks for that Dunston...are there any other independent sites I could look at to get a cheapest deal....also...if I get 9 months full pay (6 months plus 6 months half) is it wise to postpone the claim to 9 months or not really....


I was concerned that


1 - if I am out of work...it might not be for as long as 9 months - but then is there any point having it?
2 - if I claim straight away - will the PHI allow sick pay + claim pay = double pay per month?

dunstonh

thanks for that Dunston...are there any other independent sites I could look at to get a cheapest deal....also...if I get 9 months full pay (6 months plus 6 months half) is it wise to postpone the claim to 9 months or not really....

I doubt it. Many providers still use paper applications on this type of product. One of the reasons why comparison sites avoid it.

Also, as I mentioned earlier, it is a product type where the products are all different. So, price is not a good comparison without knowledge of the coverage.

1 - if I am out of work...it might not be for as long as 9 months - but then is there any point having it?

You dont really need it for 9 months off sick as you have employer cover for 6/6.

2 - if I claim straight away - will the PHI allow sick pay + claim pay = double pay per month?

No, that is not allowed. The Govt set a cap. You are not allowed to be better off sick than you are working.

Can you clarify whether you are after sickness cover or unemployment cover?

FIRSTTIMER

mainly for unemployment and any sickness beyond 6-9 months.......

FIRSTTIMER

so if I took it out - I HAVE to defer payments by 6-9 months?

dunstonh

FIRSTTIMER wrote: »

mainly for unemployment and any sickness beyond 6-9 months.......

That will require two different products then.

Unemployment is covered in a form of PPI. You dont need full ASU (accident, sickness and unemployment) but just unemployment cover.

Sickness for long term is covered by PHI. There are a couple of plans that incorporate both but having two separate is often the best way.

The unemployment plan can be 30 days (back to day 1) if you want. However, a 12 month deferment or split 6 month/12 month deferment can be done on the PHI.