Life, Critical Illness, Income protection insurance

ashe

Few questions about these please as are just getting round to sorting our cover out.

My income is about £43k and partners about £30k

We have a £200k mortgage between us with 29 years left. Trying to decide if it's best to get a joint or separate policies?

Also for income protection insurance - they require you to sign on at a job centre. How does this work as what I do probably doesn't get advertised in a job centre a lot - are you pushed to take minimum wage jobs and if you don't accept one then your cover ends? As that would defeat the purpose of taking out the cover surely? Or do you just need to show you are looking for work in your field/income level to pay the bills?

FIRSTTIMER

I have both. The Life with CIC I got when I was around 28 for £150k and is only £300 a year. It seems to have doubled in price now so I have decided to keep this one which is fixed until age 70.

The IP I got from money world, was by far the cheapest with L&G for £3000 a month until age 65. This is own occupation, so basically it considers the job you did before you go off sick but actually charges the premiums based on occupation when you took it out. Some occupations are again double what others are (you need to be savvy around this). To be honest, if you are looking for a job then you don't really use it, mine is for long term sickness/health issues if needs be. I would take out separate policies.

If you want income protection for redundancy etc, I simply saved 6 months wages on top of having a long term 0% card for emergencies to tide me over. As it costs like £50 a month for a stupidly small amount of monthly benefit fixed for 12-24 month.

SonOf

Also for income protection insurance - they require you to sign on at a job centre.

Not for income protection as that does not cover you for unemployment (bar a couple of exceptions wtih bolt on cover). You are referring to PPI. that covers you for unemployment cover and does require you to sign on.

How does this work as what I do probably doesn't get advertised in a job centre a lot - are you pushed to take minimum wage jobs and if you don't accept one then your cover ends?

Effectively yes. They want to see you taking interviews. You may get some grace to find a comparable position but sooner or later you have to take what is available.

However, your thread title says income protection but your questions are are about Payment protection insurance (PPI). These are not proper income protection plans even if a handful to market them as such.