Income protection insurance - can I take a lump sum instead of monthly payments?

I'veforgotten

Hi, thanks. 

I think you are exactly right.  

That is exactly what we have been thinking about.  A lump sum would give us a bit more financial freedom to live now and this is why we are considering asking about it. 

I think we would have a happier , more relaxed life if we were able to pay off the mortgage and have a bit of a financial safety net.  We don’t spend much money but a consequence of the brain injury is I worry about money all the time and can’t quite manage budgets as I used to be able to do which leads to (at least ) monthly panicky financial conversations with my wife who has to tell me the same thing and do the same maths to show that we are actually OK!

I think in the end a lump sum would give us a better quality of life which I think is probably more important than a few extra quid.

I'veforgotten

I’m otherwise very fit and healthy so would be considered a high risk (from the insurers point of view) for living past the end of the insurance payouts!!

Weighty1

I'veforgotten said:

I’m otherwise very fit and healthy so would be considered a high risk (from the insurers point of view) for living past the end of the insurance payouts!!

Playing devil's advocate, if you are not too good at managing budgets these days would the security of a regular income not be more sensible than a lump sum, which once it's gone is gone, not be the better option?

Whilst you may have some panicky situations each month these would likely be less panicky than the money running out totally.

TELLIT01

Also, if you worry about money might you not just be swapping the current worries to new ones about reduced income and how you will cope if the money runs out?  Neither may be a valid concern but that doesn't prevent you worrying about.  I do have some understanding of the situation as my brother suffered a severe brain injury years ago and developed what would now probably be classed as OCD traits.  He would ask a question and even after apparently accepting the answer would come at the subject time and again, possibly rewording the question slightly.  Not his fault, any more than you worrying is your fault.

theoretica

It wouldn't help with your desire to pay the mortgage off now, but with a guaranteed income and wanting a fulfilling activity for your days and to meet people, you might be an extremely welcomed and valuable volunteer for the right organisation.