Income Protection Insurance (worth it?)

sultan123

Does income insurance cover the odd day or two off work or is it just for prolonged periods of sickness?

sultan123

lassfarfromhome said:

Consider proper Permanent Health Insurance that pays out if you are unable to work through accident or illness, and until you return to work, reach retirement age, or die.  I have a chronic illness (developed out of the blue a few years ago) and will likely never work again.  Will be paid a proportion of my salary (which increases with inflation) for another 20 years, every month.  If I hadn't had that insurance I'd be in a single bedroom at my parents' and have had to sell my flat.

Sorry to hear this.

Is this criticall illness cover?

SensibleSarah

I have illness insurance that will pay out for as long as I can't work due to illness - after the initial period which is 13 weeks (during which I would have to live off savings). I'm self-employed so obviously no sick pay from an employer or SSP. To be honest, the monthly insurance benefit at current levels wouldn't cover all of my bills, but would do the main ones i.e. mortgage, energy, car, various insurances for home, car and pets etc. I'd probably have to make some changes to afford to eat though! 
I think it's worth it for my peace of mind (being as I'm a single income household).

lassfarfromhome

sultan123 said:

lassfarfromhome said:

Consider proper Permanent Health Insurance that pays out if you are unable to work through accident or illness, and until you return to work, reach retirement age, or die.  I have a chronic illness (developed out of the blue a few years ago) and will likely never work again.  Will be paid a proportion of my salary (which increases with inflation) for another 20 years, every month.  If I hadn't had that insurance I'd be in a single bedroom at my parents' and have had to sell my flat.

Sorry to hear this.

Is this criticall illness cover?

Thank you.  No, critical illness pays a lump sum if you get one of a list of illnesses (eg cancer, heart disease, that sort of thing).  What I have is Permanent Health Insurance (aka income protection insurance).  It pays me a proportion of my pre-illness salary (index-linked) until I die, reach retirement age, or return to my own job, whichever is the sooner.  It's paid monthly through my employer because it's a group income protection policy so it also funds my employer's contributions to my pension.  I'm bloody lucky