Income Protection Insurance

Weighty1

DD265 said:

Me again...

The advisor is part of a practice representing these guys: https://www.sjp.co.uk/products-and-services/products-and-services

I don't think they're independent, right? Though the breadth of insurers does seem good, and my initial inclination is to look at Legal & General because that's where our life/critical illness is. Am I best finding an independent advisor?

I'm going to see what the difference is between £1500 and £2500 cover. If it's not significant I'll probably take the higher cover, but it's a good idea to look at that and also I'm considering delaying the start to 6 months instead of 3. I'll also find out about increasing the term to 68-70, as I think that sounds sensible.

Whilst I do want to retire at 65 (or earlier!) who knows how things will pan out, and currently we're not looking at being mortgage free until mid 50s (33 now). That should come forward as we free up more money to throw at it, but starting a family will put a spanner in that works for sure! I am finding that our financial progress is snowballing as time goes on, but in the moment it feels pretty slow, and it's still difficult to balance short/medium term goals with long term. Getting better at it though

SJP aren't independent, however, based on the range of insurers listed in the link you'd be hard pressed to come up with a good reason to use a company who isn't listed UNLESS you have a specific health condition which means a non-listed company would be the best suited, however, that'd be unlikely in my experience (I specialist in arranging cover for clients with health issues for nearly 10-years).

L&G are ok for their income protection (my own is with them), however, some providers offer certain add ons free of charge which L&G don't, including fracture cover or small lump sum payouts on death or for certain traumatic conditions which have permanent implications, such as blindness or paralysis.  There are also options for certain non-free benefits to be included with some insurers such as the option for overseas "best option" medical treatment for certain serious medical conditions.  Had my health not meant I can't change insurer I'd have probably changed from L&G before now because whilst L&G are often the cheapest guaranteed premium there are very often options which provide better value for money, but that's a very individual thing.

Increasing the cover from £1,500 to £2,500 will cause a significant cost increase.  In fact, it's likely to be close to a 66% increase since that's the increase in cover.

There are a lot of protection specialists out there and personally I'd suggest using one of those rather than a holistic adviser from somewhere like SJP who typically focus on the investments and pensions business as that's where they'll earn the bulk of their income.  Someone who only arranges protection is generally going to be better placed to think outside the box and be able to maximise your cover amount whilst minimising the cost, compared to someone who does less protection but does other things such as mortgages, pensions, investments etc.

dunstonh

The advisor is part of a practice representing these guys: https://www.sjp.co.uk/products-and-services/products-and-services
I don't think they're independent, right?

SJP are restricted FAs and not IFAs or whole of market advisers.

It is mandatory for an adviser to make you aware of their status.  The fact you were not confident on that point is a little concerning.   Although the fact you are using an FA rather than an IFA is also concerning.

IAMIAM

just go to money world dot com - it will be much much cheaper

Weighty1

IAMIAM said:

just go to money world dot com - it will be much much cheaper

and provides you with no certainty that you are obtaining the right cover, with no protection from the financial ombudsman service and has no provisions for checking insurer uderwriting stance if there are any health issues present.  These sites discount their commission to nothing for a reason.........

dunstonh

Going cheapest with income protection will make you feel good whilst paying the premiums.  However, you will regret it big time if you have to claim on the policy.    Cheapest will not be best.    

DD265

By way of update - I've taken (almost) all the advice on board and:

Found an IFA through Unbiased
Reduced cover to £1500 per month
Set the waiting period to 3 months (not much difference in cost between 3/6, and I don't get enhanced sick pay)
Increased the term until 68 (so potentially 34 years)

Looking at ~£23-24 a month which is a price I'm happy with. Two options - Legal and General (our life/critical illness are with them so it feels tidy) or LV who include fracture cover so I'm mulling that over.

The FA/SJP is through work; they administer our pension, health insurance and I think some other bits. Her advice was definitely very useful, but so was the advice I've had here and I'm happy that you've helped me strike a good balance, so thank you.

GreggDooley2021

 Been through a similar journey myself recently & found going via IFA was definitely the way to go after much bouncing around - Glad you found what you needed