Which protection insurance is most necessary?

ACG

First thing then...
Your IP quote is kicking in after 13 weeks, but you have 6 months sick pay by the sounds of it. So if you were to get the deferred period altered to 26 weeks, that should reduce the premium a little. You could even extend it to 52 weeks and just have some savings to cover you for the extra 6 months. That would lower the premium further or you can do something called split deferred which is where you might get say £1,000 a month after 6 months and then the rest of your insured amount after 12 months. That would be cheaper than having it all at the 6 month deferred period. 


But for me, the priority is IP for the majority of people. That is the one policy that will pay your mortgage and the premiums on the other policies, food, utilities etc.

Just to also add, my policy is with aviva. It has something on there called Best Doctors. I have claimed on that twice (and its a freebie included in the policy). The first time was for my daughter, after she was born she was in and out of hospital for 6 months - nothing to worry about, but we did not know at the time. The other time I found some lumps and bumps where you dont want to be finding them as a man. Again, nothing to worry about but quite scary at the time. I spent 30 minutes on the phone with a Dr going through my reports. My own GP spent less than 4 minutes on the phone with me. That alone was worth the premiums I have paid. 

Ybe

ACG said:

First thing then...
Your IP quote is kicking in after 13 weeks, but you have 6 months sick pay by the sounds of it. So if you were to get the deferred period altered to 26 weeks, that should reduce the premium a little. You could even extend it to 52 weeks and just have some savings to cover you for the extra 6 months. That would lower the premium further or you can do something called split deferred which is where you might get say £1,000 a month after 6 months and then the rest of your insured amount after 12 months. That would be cheaper than having it all at the 6 month deferred period. 


But for me, the priority is IP for the majority of people. That is the one policy that will pay your mortgage and the premiums on the other policies, food, utilities etc.

Just to also add, my policy is with aviva. It has something on there called Best Doctors. I have claimed on that twice (and its a freebie included in the policy). The first time was for my daughter, after she was born she was in and out of hospital for 6 months - nothing to worry about, but we did not know at the time. The other time I found some lumps and bumps where you dont want to be finding them as a man. Again, nothing to worry about but quite scary at the time. I spent 30 minutes on the phone with a Dr going through my reports. My own GP spent less than 4 minutes on the phone with me. That alone was worth the premiums I have paid. 

Thanks. Yes I agree IP is what I want but my broker keeps trying to get me to take CIC and life assurance too. My sick pay pays up to a month at the moment but after 2 years service with the company it will go up to 6 months. I was also told that I won’t be able to claim on both my employers and this IP at the same time which makes me think I can defer it for 1 year. 

PixelPound

Is your mortgage broker giving you the insurance quotes or referring you to a particular company, or have you done it? 

My mortgage broker simply said I needed life cover for the both of us as a condition of the mortgage and might want to look into IP, etc but left it up to me unless I wanted recommendations. However I know some push it more as they get a referral fee. 

ACG

nic_c said:

Is your mortgage broker giving you the insurance quotes or referring you to a particular company, or have you done it? 

My mortgage broker simply said I needed life cover for the both of us as a condition of the mortgage and might want to look into IP, etc but left it up to me unless I wanted recommendations. However I know some push it more as they get a referral fee. 

If your mortgage was taken out in the last 25 years, your broker was very likely lying about the life insurance. I dont think it has been a condition of the mortgage since the 90s (before my time as a broker). 

ACG

Ybe said:

ACG said:

First thing then...
Your IP quote is kicking in after 13 weeks, but you have 6 months sick pay by the sounds of it. So if you were to get the deferred period altered to 26 weeks, that should reduce the premium a little. You could even extend it to 52 weeks and just have some savings to cover you for the extra 6 months. That would lower the premium further or you can do something called split deferred which is where you might get say £1,000 a month after 6 months and then the rest of your insured amount after 12 months. That would be cheaper than having it all at the 6 month deferred period. 


But for me, the priority is IP for the majority of people. That is the one policy that will pay your mortgage and the premiums on the other policies, food, utilities etc.

Just to also add, my policy is with aviva. It has something on there called Best Doctors. I have claimed on that twice (and its a freebie included in the policy). The first time was for my daughter, after she was born she was in and out of hospital for 6 months - nothing to worry about, but we did not know at the time. The other time I found some lumps and bumps where you dont want to be finding them as a man. Again, nothing to worry about but quite scary at the time. I spent 30 minutes on the phone with a Dr going through my reports. My own GP spent less than 4 minutes on the phone with me. That alone was worth the premiums I have paid. 

Thanks. Yes I agree IP is what I want but my broker keeps trying to get me to take CIC and life assurance too. My sick pay pays up to a month at the moment but after 2 years service with the company it will go up to 6 months. I was also told that I won’t be able to claim on both my employers and this IP at the same time which makes me think I can defer it for 1 year. 

Thats correct. Ultimately you cant be better off not working. 
Which is why they generally stop at around 60-70% of your income as you have tax coming off your income to account for. 

IP normally ties in with your sick pay, so 6 months sick pay = 6 month deferred period. But if cost is a factor then you can delay it. 

I think life insurance is one of those no brainers personally if you have kids or dependents. It is normally quite cheap so for the price of maybe 2-3 pints you can have a reasonable amount of cover. But if you have no dependents then it is probably just a waste of money. 

CI can be justified regardless. I think it has its place, but I am not its biggest fan. 

Ybe

nic_c said:

Is your mortgage broker giving you the insurance quotes or referring you to a particular company, or have you done it? 

My mortgage broker simply said I needed life cover for the both of us as a condition of the mortgage and might want to look into IP, etc but left it up to me unless I wanted recommendations. However I know some push it more as they get a referral fee. 

They’re Giving me the quotes from a particular company. And that quote outlines the referral fee of £1700.