Income Protection\Life & critical Illness

Weighty1

SonOf wrote: »

Income protection (the Permanent Health Insurance type. Not the PPI type) is above CIC in the pecking order of priority.

CIC and IP do not overlap. So, ideal scenario is to have both. However, if you are only going to have one, then IP is better.

Exactly this!

I was looking at some stats the other day from LV, Aviva and Royal London. An AVERAGE claim on their income protection plans lasts 4yrs 6wks, 4yrs 33wks and 9yrs 11months, so whilst you get decent sick pay entitlement if you were to go long term sick then it could easily be insufficient.

Not only that, with the 3 providers above the top 3 reasons for claims were musculo-skeletal conditions (things like back problems), mental health conditions and cancer. Obviously, only 1 of those is a critical illness so in that respect your existing policy doesn't provide you with the type of cover needed to eliminate this risk altogether.

If we knew what was to befall you then we'd know which was best. For example, if you had a heart attack you'd probably want the critical illness as you might only be off work for 2 months but if you suffered a stroke then you'd probably want income protection as you may never be able to do your job again.

Ideally, get both.

madaminx

This is exactly my question as well. Thanks BKD1972 I now don't need to and you've worded the question so much better than I have.


:-)