In my income protection worth it?

PaulD9252

Hi

I recently got a note from my insurance company to say that my premium was going up for my income protection insurance - its was quite a hike so I thought I would look around for an alternative quote. By chance I got talking to a man who was an IFA (not mine) who said that as owned my own company (51% share holder) I was technically self employed and so couldn't get Income protection insurance - based on the point that I could make myself redundant at anytime!

Is this true?
And if so have I juts wasted more than 10 years of payments!

Chris_Pollard

Paul, is this a policy to protect you against redundancy, or against loss of income in the event you become incapacitated as a result of illness or an accident?

Weighty1

If you are looking for cover in the event of ill-health then you can absolutely get income protection to cover that scenario. The type of plan that covers you for redundancy is extremely difficult to claim on when being classed as self employed so in regards to that, whilst the IFA isn't 100% accurate, it generally isn't recommended.

dunstonh

By chance I got talking to a man who was an IFA (not mine) who said that as owned my own company (51% share holder) I was technically self employed and so couldn't get Income protection insurance - based on the point that I could make myself redundant at anytime!

Is this true?

You can get income protection. However, you would find Payment Protection virtually impossible. Are you mixing up payment protection and income protection? Is yours PPI or PHI? It sounds like PPI from what you say and the IFA would be correct on that basis.

PHI (permanent health insurance) is proper income protection and virtually all occupations and employment status can get that.

I suspect the IFA was referring to PPI and is correct on that basis. I don't believe they would be referring to PHI as the IFA would know you would be eligible for that (and its a product that is mostly retailed via IFAs).

PaulD9252

Hi I think Dunstonh got it spot on - I think it was me mixing up comments about PPI and PHI -
So I went back last night and had a look at the documents and its all health related - so not wasted premiums!

Makes me think I should look to see if I have paid PPI somewhere!!

Thanks for the comments