Income protection insurance

dk5294

Hello everyone, I was wondering if anyone can help me a little with income protection insurance and how to go about it? I'm not fully sure I understand it but this is my reasons for wanting to take it out.

I work for a small, family business, have done for over a year and my only sickness was due to hospitalisation which was covered by a sick line (9 days) and I was paid at the boss' discretion. I was honest when I went back that I had been referred for surgery, they never said anything, never approached me to discuss further. I've just had my pre-op and surgery is imminent and my boss won't say if I'll be paid or not. I'll be off work for a minimum of 6 weeks but have been warned that I may be able to go back on very light duties but it would depend on what happens at my 6 week check up. I just want to get my affairs in order so I don't get any nasty surprises. He's never not paid someone for being off unwell but people have used that to their advantage recently and took the mick and I don't want to be the person he makes an example of in the new year with no fall back.

Is there an income insurance that would fit my needs? I'd be looking for a term of 12 months which I know some companies do but other than that I'm stumped.

Also is it 70% if your wage plus statutory sick pay or instead of?

YHM

Are you looking for an insurance policy that will pay out for this impending 6 week absence? If so, that won't happen. Anything pre-existing or ongoing is generally excluded from an IP / AS policy.

FIRSTTIMER

I would get some quotes from money world. They are really good and I certainly recommend them.

I have got Life with CIC until 70, fixed at £32 a month for £200k and I recently took out Income Protection (PHI) until age 65 with a 6 month deferral, fixed at £28 a month for £3k monthly until return to work. I think they are both well worth having at only £60 for both.

I then only have redundancy to worry about - which short term savings will cover. Defo piece of mind having them.

tacpot12

Income protection insurance is a valuable insurance, but it needs to be supplemented by your employer paying Statutory Sick Pay and your own savings. Ideally you will have 12 months of living expenses saved and a Income Protection policy that kicks in after 52 weeks of illness. This will keep the cost of the insurance to be bare minimum

NinaSwiss

FIRSTTIMER wrote: »

I would get some quotes from money world. They are really good and I certainly recommend them.

I have got Life with CIC until 70, fixed at £32 a month for £200k and I recently took out Income Protection (PHI) until age 65 with a 6 month deferral, fixed at £28 a month for £3k monthly until return to work. I think they are both well worth having at only £60 for both.

I then only have redundancy to worry about - which short term savings will cover. Defo piece of mind having them.

Wow! the PHI at £28 looks really good and I'm starting to wonder why I pay twice that (3 month deferral, £2400 per month,same occupation, index linked, pays till retirement, Legal & General)

NinaSwiss

OP, I dont think a new income protection policy will cover an existing upcoming sick leave.

kingstreet

NinaSwiss wrote: »

OP, I dont think a new income protection policy will cover an existing upcoming sick leave.

Me neither.

It's too late to take out Fully Comp when you've just piled your car into a tree!

Weighty1

There are some short term income protection plans (the old style Accident, Sickness & Unemployment policies) that WILL cover you for pre-existing conditions but only once the policy has been in force for >12-months.

I think you've left it too late to get any sort of income protection cover unfortunately.

dk5294

Thank you all for your replies. I was feeling hopeful that I may be able to find an insurer that will take on pre-existing but I knew it was unlikely.