Do You Have Any Protection?

marsman802

For me it is part and parcel of the whole mortgage.
Why risk it when I've got a whole family relying on me? Just seems such a no brainer - I don't want anyone to worry about anything should the worst happen to me.
I appreciate it is quite different if you do not have dependents and I can see why you wouldn't be totally sold on it.
To me it just isn't fair to leave this huge burden on everyone...a £400k policy for just £65pm starting at the age of 32 seems pretty reasonable to me when I spend £50 a month on a mobile phone.

amnblog

Anyone comparing life insurance or critical illness insurance with car insurance, breakdown cover, or talking about odds and chances of claim is totally missing point.


If you had ever handed our claims cheques to widows, orphans, or someone recently diagnosed with cancer or MS, you might understand what this insurance is about.


I sincerely hope every one of my life and sickness protection insurance clients are 'wasting' their money but I suspect that is not the case.

rover25

Do most of the illness policies pay out for a maximum time. I looked at a few & think they were saying they would pay for 12-24mths.
Is this correct?
If you had sick pay for the same time, would they still be worth it? Do they still pay out if you are receiving sick pay from your employer?

ACG

The online cheap policies usually pay out for 1, 2 or even 5 years, but as the average claim is 6-7 years you are underinsuring if you are mr/mrs average.

When the polciy kicks in and how much for depends on your sick pay at work. Someone on the NHS for example would get 6 months full pay and 6 months half pay.

So if you were insuring yourself as best you could, you would have half of the benefit kick in after 6 months and half after 12 months. However, the cost may be too high so you may decide to have 3 months wages set aside and then have the full benefit kick in after 12 months. The longer the deferred period, the cheaper the premiums.

Keep_pedalling

Unfortunately far too many people think they are immortal, and leave their loved ones in a financial mess because they don't insure themselves and in the case of unmarried partners fail to make a will.

There are plenty of threads elsewhere on this forum with such tales of woe, and people who do this IMO are utterly irresponsible.

dunstonh

Do most of the illness policies pay out for a maximum time. I looked at a few & think they were saying they would pay for 12-24mths.
Is this correct?

That is budget PPI. Not proper income protections. PHI (permanent health insurance) can pay you right up until retirement. Comparison sites prefer PPI as its an easier sell and more profitable.

If you had sick pay for the same time, would they still be worth it? Do they still pay out if you are receiving sick pay from your employer?

You set the deferment period to match the end of your employer sick pay.

rover25

Any recommendations for PHI?

anotheruser

I'm not particularly arguing for either side

But I do see it as a bit expendable at the moment.

I don't have pet insurance, I'm happy to pay when it happens... if it happens.

Coming back to your point about mobile phone insurance David White - the liklihood of needing that particular insurance is much more greater than critical illness or something similar.

I guess that is what insurance is about; weighing up the chance of it happening. If my cat gets ill, so ill it's too much for me to pay, I'll accept and put them to sleep. The difference is, if I insured them now, I might be paying £12 a month, for 7/8/9 years before I need it. If I saved that money in a seperate account, I am sure it would be enough to cover what I needed.

Again, I understand this is completely different insurance, but the principle is the same.

Dan-Dan

anotheruser wrote: »

I might be paying £12 a month, for 7/8/9 years before I need it.

And the rest...it goes up each year doesnt it?

kingstreet

When the changes in SMI are made turning the benefit into a secured loan, there should be a mandatory protection rule introduced so borrowers can continue to make their payments in the event of illness or unemployment.