How does my PHI income protection compare?

Victorwelldue

As per title just wondering how my income protection policy stacks up against others in terms of value for money and benefit as I find there isn't an abundance of info available online for this particular type of financial product.

So I took out my policy via an IFA around 10 years ago when in my late 30's with Pru-Protect which is now Vitality. I seem to remember at the time reading somewhere that it had a good defaqto rating but not sure if that was just me falling for marketing hype as it was my choice rather than the IFA's (at the time you could not sign up directly with Pru). I initially paid £28 per month for benefit of £1000 per month up to age 65 in event of a claim then around a year ago I decided that I wanted more benefit to keep up with my income that had risen a bit over the years so applied with Vitality to double the benefit to £2000 per month in event of claim (not index linked). Vitality seemed happy enough to deal with me direct on this occasion. I completed all the questionnaires and while I'm generally fit & healthy (non smoker, no weight issues etc) I have developed a recurring middle ear issue that means 2-3 times per year I suffer from dizziness attacks while sleeping that can leave out of sorts for a few weeks following an attack, though I have only so far missed 1 week off work since this issue started around 7 years ago. I was honest about all this on the forms and Vitality confirmed with my GP so I now pay £80 per month for £2000 per month benefit up to 65 and it kicks in after not being able to work for 12 weeks.

I think this is quite expensive but then again I have nothing to really compare it to which is really the purpose of this thread, I'd like to get an idea of how it compares to others, preferably others in broadly similar circumstances as I am aware that there's a lot of variables involved with this type of insurance. Although it is expensive I can afford it and I certainly do value the peace of mind it gives me but have been wondering lately if I should maybe be shopping around for a better deal?

Sandtree

I'm sure one of the IFAs will come along shortly to give you their views but age when taking the policy out/making adjustments makes a material difference to the price even if your medical history hasnt changed and your still looking to retire at the same age.

By comparison, my PHI is circa £150 for £4k of cover taken out in mid 30s to pay until 65, index linked, 12 week deferment, with being over weight, ex smoker, a congenital endocrine issue and annoyingly an inner ear infection a month before taking the policy out (felt drunk for a fortnight but without the good bits). Policy is with Aviva but that was more about who'd consider my congenital issue especially after the IFA I initially went to got a decline from Aviva and basically said I was uninsurable. 

csgohan4

difficult to compare, everyone has different insurers and medical history. 

Maybe consider engaging a broker who can see what's available for you today and see if they can beat it. 

IAMIAM

Mine is £26 per month fixed for £3k per month until age 65, 6 month deferral, taken out at age 32. In effect the whole cost being 10k over a lifetime so only need a claim of 3 months to literally get what I will pay for the whole lifetime of the policy. Legal and General.

Victorwelldue

Thanks for the replies. A couple of interesting comparisons there, and goes to show best to get this insurance as young as possible while still fit & healthy! As said difficult to compare but still feel I'm perhaps paying a bit over the odds so I may well talk to a broker. 

IAMIAM

Go through money world - much cheaper 

dunstonh

When it comes to PHI, its usually best not to focus on costs first.  Otherwise you end up with a budget level plan that could be next to useless when you need it.  That doesn't mean higher premium = higher quality but it is fairly consistent that the budget cost end means budget coverage.

Weighty1

IAMIAM said:

Go through money world - much cheaper 

That's all very well if an applicant has zero medical issues, however, in this instance the OP may end up with exclusions on their plan which aren't on the Vitality plan.  They'd be shooting in the dark to try and find an insurer who wouldn't exclude the condition and could end up having to apply time and time again.

IAMIAM

Weighty1 said:

IAMIAM said:

Go through money world - much cheaper 

That's all very well if an applicant has zero medical issues, however, in this instance the OP may end up with exclusions on their plan which aren't on the Vitality plan.  They'd be shooting in the dark to try and find an insurer who wouldn't exclude the condition and could end up having to apply time and time again.

This is ridiculous. You pick up the phone to moneyworld instead. 

IAMIAM

dunstonh said:

When it comes to PHI, its usually best not to focus on costs first.  Otherwise you end up with a budget level plan that could be next to useless when you need it.  That doesn't mean higher premium = higher quality but it is fairly consistent that the budget cost end means budget coverage.

Agreed. However income protection is usually the same with all providers. Doctor signs off own occupation, insurance company agrees. Its Life with CIC that is the major one to look at in detail. 

Weighty1

IAMIAM said:

Weighty1 said:

IAMIAM said:

Go through money world - much cheaper 

That's all very well if an applicant has zero medical issues, however, in this instance the OP may end up with exclusions on their plan which aren't on the Vitality plan.  They'd be shooting in the dark to try and find an insurer who wouldn't exclude the condition and could end up having to apply time and time again.

This is ridiculous. You pick up the phone to moneyworld instead. 

NOT ridiculous at all.
From their own website:  "We don’t give financial advice or recommendations here. Instead we focus on giving you the information you need to make your own decisions."

Moneyworld should NOT be giving advice on which provider to use as they don't give advice.  PLUS, if they discount the majority of the commission in the same way Cavendish Online do then do you think it'd be profitable for them to be speaking to clients in depth and making sure they get all the relevant info needed by the insurers and then calling round all the insurers to find the company which will offer the best terms.  You're living on cloud cuckoo land if you do.