Income protection - Not sure whether to get it?

kingstreet

Slinky wrote: »

I'm fairly sure it wasn't a life insurance policy she had as I would have expected that to pay out, given that's what you're paying it for, I think it was some sort of income protection insurance.

If it paid a lump sum, it was the terminal illness add-on to a life policy, or a claim on a critical illness cover plan.

Slinky

kingstreet wrote: »

If it paid a lump sum, it was the terminal illness add-on to a life policy, or a claim on a critical illness cover plan.

I think you're right about the critical illness plan.

Filo25

Fortunately I get PHI and life cover for that matter through work.

I did do a redundancy income protection product for a while after taking out my mortgage but ditched it after a while, just too expensive for the cover on offer and level of risk given I have been in my job 14 years now, hopefully I don't regret that decision down the line!

Marvel1

I'm single and earning £20,000 (before deductions), only insurance I have is building and contents. I just don't trust others to payout.

I would read the policy terms very closely if you consider it.

kingstreet

SuzieSue wrote: »

I agree that you should consider Permanent Health Insurance. However, I would not get one with Own occupation cover as, unless you are bed-bound, it would be unlikely to pay out as they could always always do some sort of work.

'Own Occupation' cover means the benefit is paid if you are unable to perform the essential duties of your own job. If you pick 'work tasks', or 'suited occupation', then it is more difficult to claim as you may be able to do some things and could be considered capable of work.

'Own Occupation' is the best option of all.

SuzieSue

kingstreet wrote: »

'Own Occupation' cover means the benefit is paid if you are unable to perform the essential duties of your own job. If you pick 'work tasks', or 'suited occupation', then it is more difficult to claim as you may be able to do some things and could be considered capable of work.

'Own Occupation' is the best option of all.

Thanks, I have deleted my post.

Nadeshkarine

Just to add to the opinions - we are currently looking at these insurances as we're in the process of buying too.

I get income protection via my employer, but my husband doesn't so we our mortgage broker priced it up for us. It came to £30/month, which we felt was more than we would want to commit to in our case.

This was primarily because we could survive on just my salary with some serious belt tightening. I too am risk averse - I am paying for life & critical illness cover (albeit through my employer and hence subsidised) but overall we didn't feel the added cost was worth it.

Help1234

Can you terminate the policy in a few years time if you find a better one?

dhokes

Help1234 wrote: »

Can you terminate the policy in a few years time if you find a better one?

Most probably but it's worth checking the terms of the specific policy you get.

dhokes

kingstreet wrote: »

Permanent Health Insurance has no connection with any lending product. It is designed to replace income lost due to illness or disability. It has featured due to the OP taking a mortgage, but the cover is not related to a mortgage payment or lender.

Unemployment or redundancy is not a feature.

PPI was sold without advice and often a single premium was added to borrowing, with no monthly premium option being offered.

PHI has nothing to do with 'the banks' it's a product which has been offered by traditional life assurers for decades but which has been tainted by association. It is a product still largely sold via the advice process where cover is tailored to the applicant's personal circumstances, such as occupation, deferred period, term etc.

It really is a valuable product badly undersold and misunderstood.

Hi, sorry to hijack the thread but what's the difference between getting income protection (accident, sickness and unemployment) (payout until the end of a 30+ years term policy) + serious illness insurance compared to 'permanent health insurance'?

I've got IBD (ulcerative colitis) and I'm looking to protect myself as I'm in the process of buying a house. I know pre-existing health conditions are excluded but since I'm at a higher risk of other illness, I want to protect myself so that I can continue to pay the mortgage if I'm off work for a long-period of time or indefinitely.