Best income protection insurance?

Grandlygrace

“Out of interest, which insurer did you apply with via LifeSearch?”

The man I spoke to said he’d put it through several insurers but the cheapest was Prudential (I think!). It jumped from an initial quote of £27 a month to £49 a month, based on my ‘height to weight ratio’ and the fact my dad had a heart attack at 42.

It’s good in a way, as I’ve been just living for the moment and not considering that extra weight could be a significant issue. So, it’s given me a bit of a kick up the bum! I still feel there must be a way of getting it a bit cheaper...but we’ll see. 😊

Weighty1

Prudential no longer existing as an insurer, although they used to be closely linked to the insurer who are now VitalityLife.

If they submitted via several insurers then they may have been using the UnderwriteMe platform. This always duplicate applications via several insurers to provide the best outcome at the end. That said, not all insurers are available via UnderwriteMe so it may still be that better terms are available elsewhere or the cover structure could be changed to bring the underwrite terms back within your budget.

steakpie01

I am moving jobs and the only issue I have is the reduced sick cover with the new post. I'm looking at STIP. Does anyone know what policy/company offers the best policy?

dunstonh

Does anyone know what policy/company offers the best policy?

It isnt as simple as that. Occupation and health are considered. And budget. Plans can largely be placed into budget, middling and comprehensive. The best may not fit with your budget, health or occupation. The best for one person may not be the best for another.

Weighty1

steakpie01 wrote: »

I am moving jobs and the only issue I have is the reduced sick cover with the new post. I'm looking at STIP. Does anyone know what policy/company offers the best policy?

Why only short term cover. What happens if you get paralysed in an accident and can't work ever again?

5092

DO NOT go for First Call Payment protection (god knows why they dont call it income protection). My claim has been accepted but as they are a broker only they use Davies Managed Systems who pay you and basically harass you every month asking for a mountain of paperwork every month. Its so stressful its insane and god knows why it was recommended by MSE in their income protection section. 

Sandtree

Grandlygrace said:

. I’ve got nothing to hide (I know transparency is super important if I want to actually be covered!) but are these deals any better? Not sure why they wouldn’t ask health questions

The chances are it was for a quote for ASU (aka PPI when tied to a loan or mortgage etc) - unfortunately "income protection" is a term associated with two different products.

With this type of cover the underwriting is only done at the point of claim so the policy will stipulate things like no cover for self employed, pre-existing medical conditions etc and it is up to you to read it, understand it and work out how it will impact your personal situation. As such the level of certainty is much lower as you may think a hand injury you received as a teenager is nothing but they may decline a claim for arthritis in your hand in the future because of it. Typically if they do payout then the period of payment is limited to 12 months.

PHI, the full fat version of Income Protection, is underwritten at point of sale and so they may decide that your hand injury will preclude any claim for hand injuries but you will know that before you decide to buy (or they may confirm they don't consider it an issue). Similarly they will pay out their benefits until you reach your nominated age (often 65) rather than just 12 months.

Cover, and so price, is vastly different between the two.