Do You Have Any Protection?

getmore4less

The one combination most people miss is one becomes ill other becomes carer.

Probably worst case scenario.

Both jobs gone but cover only for one job as the other is voluntary.

Many other combination of illness and death have alternative solutions if no dependants(non earning partner and or kids)

Don't forget to insure the non earner if you have kids.

marsman802

getmore4less wrote: »

The one combination most people miss is one becomes ill other becomes carer.

Probably worst case scenario.

Both jobs gone but cover only for one job as the other is voluntary.

Many other combination of illness and death have alternative solutions if no dependants(non earning partner and or kids)

Don't forget to insure the non earner if you have kids.

Spot on - I also have a policy to provide income until daughter turns 18 should the worst happen to me. Only cost £9 a month in my case.

David_White

chelseablue wrote: »

I have insurance through my employer.

If I die my partner will receive 8 x my salary which would be enough to pay off the mortgage on our house

If I was unable to work due to illness/injury I would receive 50% of my monthly salary every month until I am retirement age, or I go back to work

What happens to these employee benefits if you were made redundant or left the job?

minimike2

Employers cover is great!

Redundancy not so. Having to work for another employer that doesn't offer it also not so great. Employers benefits are nice, but really should not be relied upon because you never know when they might stop, either through redundancy, you choosing to move on or the benefit scheme just being removed.

Also worth noting that employers cover is not really meant to be there to repay the mortgage. It is to replace the income which you will no longer provide to your family because you are dead. Once it's gone, it's gone - you ain't coming back. Great to leave a mortgage free house, pointless if they can't afford to live in it.

The only sure fire way is your own policy. Yes if you cover EVERY angle it can be expensive and so it's looking at what you feel is relevant to you - bearing in mind that statistically during the time you have your mortgage, you are most likely to be off long term sick or be made redundant, second most likely is a CI and lastly death. This question comes up time and again on these forums. Last time it cropped up I made a big "speech" and it was pointed out by someone that it was the voice of someone who has had a client claim. Which was true. I am sure it is easy enough to dig it out with a forum search so I'm not giving the whole sermon again, but....

Since then there's been another CI situation a bit closer to home..... Aren't I glad I follow my own advice......

anotheruser

David_White wrote: »

What is your reasoning for thinking you don't need it?

While it's not particularly a true comparison, I have never had breakdown cover.
I have needed it once in the last 5 years or so, which cost me about £100 to join and get recovered. If I had been paying out for the same cover over that 5 years, it would have cost more than what I paid for a one-time recovery.

I have been renting for nearly 10 years. Never had contents cover. Perhaps I have been lucky not to have been robbed. I'm pretty good with my possessions - never had a phone smashed on me. I wonder how much I would have wasted over the last 10 years.

I am fairly young and in good health. While anything could happen, it might not.

Insurance is all a game of chance. Some insurances are compulsory, others are not. I do get some cover through work (although that is death), which would pay off well over 50% of the mortgage. Weighing up the likelihood of me not being able to work is very low. Is it too low to not bother with some sort of protection for a few years? Quite possibly so.

David_White

The difference is that if your car breaks down and you don't have cover you fork out a few hundred to be towed and have your car fixed. Worst case scenario you have to buy a new car.

If you suffer a critical illness you may never work again. Multiply your annual income by the number of years until you retire to get an idea of what you're worth.

If you drive or even cross the street then it's entirely irrelevant that you're "young and in good health".

The amount of people that pay for things like mobile phone insurance but don't protect themselves is staggering.

dunstonh

While it's not particularly a true comparison, I have never had breakdown cover.
I have needed it once in the last 5 years or so, which cost me about £100 to join and get recovered. If I had been paying out for the same cover over that 5 years, it would have cost more than what I paid for a one-time recovery.

And if you had a £100k mortgage with 25 years to go, then you are looking at covering around £220k of future expenditure. Plus, it is too late to buy health underwritten insurances after you suffer the event.

Insurance is all a game of chance. Some insurances are compulsory, others are not. I do get some cover through work (although that is death), which would pay off well over 50% of the mortgage. Weighing up the likelihood of me not being able to work is very low. Is it too low to not bother with some sort of protection for a few years? Quite possibly so.

Most people will pay the insurance and get away with never having to claim on it. Insurance removes the game of chance. Not having insurance is the game of chance.

My youngest claimant on CI cover is 25. I had one last year who was 31. Both were fit until it happened. I have seen people with insurance and without. Those without have often gone on to suffer hardship. Indeed, one widow told me she now hates her deceased husband for the financial mess he left her in and the hardship it created.

JimmyTheWig

anotheruser wrote: »

Insurance is all a game of chance.

I agree.
And it is obviously a game of chance that is weighted in favour of the insurance company. Otherwise they wouldn't bother being in business!
So on that basis it is not worth it. In the long run, like going to the casino, you will lose money.

BUT... This is only relevant if you can afford to cover yourself what you are considering getting insurance for. If you can't, e.g. you hit someone in your car and have to compensate them for never working again or you become ill yourself and are never able to work again, then an insurance policy is worth more than the expected payout.

David_White

Firstly, an insurance company is a business not a charity.

The risk is on both parties though:

Example 1 - Client pays their insurance premium for 30 years and never claims. Premium was £50pm so they've paid £18,000 in total to the insurance company. On the plus side they've not been critically ill or died!

Example 2 - Client pays 1 premium of £50 and suffers a critical illness. The insurance company pays them a lump sum of £250k.

Obviously made up figures, but you get the idea.

dano17439

I have 2 x life insurance (1 free via my employer, 1 paid for), family protection, critical illness and income protection


My wife has 2 x life insurance (1 free via her employer, 1 paid for), critical illness and income protection


Costs us around £200 per month, and I have the satisfaction of knowing if the worse happens (or even not the worse, but something bad), my family will be taken care of