Income protection insurance - any good or worthless?

AdviceSought

So, recently I've lost a good chunk of money (which I can't afford) due to statutory sick pay.

From what I can see, income protection policies look quite cheap.

So, my question is, are these actually any good, or are they pretty difficult to claim against?

dunstonh

Proper income protection (PHI) is considered very important. Budget payment protection is pretty naff in most cases.

From what I can see, income protection policies look quite cheap.

Have you been looking at PPI or PHI versions?
If PHI, have you looked at the budget or comprehensive versions? (there is no official name for the versions but you could spread them across budget, standard and comprehensive).

So, my question is, are these actually any good, or are they pretty difficult to claim against?

decent PHI has a very good claims record. The more budget you go, the more restrictions that get put in.

Weighty1

I think one issue which needs covering here is the reason why you were off sick. If it was due to a serous matter then it may be that the providers of the PHI version Dunstonh mentions above may not cover you or that if they did then an exclusion would be placed on the cover for the reason you've been signed off sick.

In addition to that, income protection normally has a deferred period during which you cannot claim on the plan. Few providers offer cover which pays out before 4-weeks, the ones which do then reflect the short deferred period in the premiums as it's a pretty big risk for an insurer to offer cover that pays out after only a few days illness.

Your best bet would be to speak to an independent adviser to discuss your options, whether that's an insurance only adviser or independent financial adviser.