Unemployment/sickness insurance

SensibleSarah

DullGreyGuy said:

SensibleSarah said:

I have critical illness cover. Payment deferred for 13 weeks (so I have a fund saved in case of that). Pays out until I recover enough to work again or die. Obviously, something I hope that I'll never need, but as a single income household, the stakes are high.

That isnt critical illness... critical illness pays a lump sum on diagnosis of a predefined list of conditions to a required level of severity. 

Marcon said:

That's an income replacement, or Permanent Health Insurance, policy. You may find critical illness cover (if you can afford to have both) would be no bad idea, although hopefully you'll never need either.

Fair enough - thanks both for clarifying. It's essentially cover that pays a set sum each month if I'm unable to work due to illness rather than a lump sum. It won't cover everything, but would cover the main bills such as mortage, utilities, council tax etc.
I'm not planning to take out critical illness cover as well though, but do plan to build a bigger rainy day fund. 

DullGreyGuy

SensibleSarah said:

DullGreyGuy said:

SensibleSarah said:

I have critical illness cover. Payment deferred for 13 weeks (so I have a fund saved in case of that). Pays out until I recover enough to work again or die. Obviously, something I hope that I'll never need, but as a single income household, the stakes are high.

That isnt critical illness... critical illness pays a lump sum on diagnosis of a predefined list of conditions to a required level of severity. 

Marcon said:

That's an income replacement, or Permanent Health Insurance, policy. You may find critical illness cover (if you can afford to have both) would be no bad idea, although hopefully you'll never need either.

Fair enough - thanks both for clarifying. It's essentially cover that pays a set sum each month if I'm unable to work due to illness rather than a lump sum. It won't cover everything, but would cover the main bills such as mortage, utilities, council tax etc.
I'm not planning to take out critical illness cover as well though, but do plan to build a bigger rainy day fund. 

There are two types of income protection insurance.... the better one is PHI which Marcon mentions and it is a form of long term insurance but some providers of ASU/PPI also call their product income protection and as an annual policy and not underwritten at point of sale its a much weaker product. 

If you were on the Insurance forum here during covid many with the ASU type of cover found their insurance not renewed or increasing price 4 fold. With PHI the insurer cannot just cancel the policy (exc non-payment etc) and most have guaranteed premiums.

Can be worth checking what class of insurance you've bought so you at least know the cover properly. I'm not a fan of CI so dont personally have it either but clearly those that do and unfortunately have to make a claim clearly think its a good job they had it.