Income insurance protection

Yorkshirelass123

Hi. I've been paying for income protection insurance since 2017.  Currently I'm paying £37.46 a month which will pay out £600 per month should I not be able to work due to illness (with some limited exclusions). The claim period is full term to age 64 (I'm currently 55). I live alone and have a mortgage of £440 a month for another 12 years. I've recently become unemployed so I'm just weighing up my outgoings and although I feel this insurance is good value for money and a safety net should I become ill, I'm not 100% sure and just wanted some advice please. Any views/help would be much appreciated.

MattMattMattUK

Yorkshirelass123 said:

Hi. I've been paying for income protection insurance since 2017.  Currently I'm paying £37.46 a month which will pay out £600 per month should I not be able to work due to illness (with some limited exclusions). The claim period is full term to age 64 (I'm currently 55). I live alone and have a mortgage of £440 a month for another 12 years. I've recently become unemployed so I'm just weighing up my outgoings and although I feel this insurance is good value for money and a safety net should I become ill, I'm not 100% sure and just wanted some advice please. Any views/help would be much appreciated.

Surely on the basis that you are unemployed your income protection insurance has kicked in, so for the monthly payments of £37.46 pm they are paying you £600pm? On a net basis that would seem a good deal, at least in the short term. 

DullGreyGuy

MattMattMattUK said:

Yorkshirelass123 said:

Hi. I've been paying for income protection insurance since 2017.  Currently I'm paying £37.46 a month which will pay out £600 per month should I not be able to work due to illness (with some limited exclusions). The claim period is full term to age 64 (I'm currently 55). I live alone and have a mortgage of £440 a month for another 12 years. I've recently become unemployed so I'm just weighing up my outgoings and although I feel this insurance is good value for money and a safety net should I become ill, I'm not 100% sure and just wanted some advice please. Any views/help would be much appreciated.

Surely on the basis that you are unemployed your income protection insurance has kicked in, so for the monthly payments of £37.46 pm they are paying you £600pm? On a net basis that would seem a good deal, at least in the short term. 

Income Protection is a marketing name applied to both PHI and PPI/ASU/AS. Some of those have unemployment cover and others dont but cover sickness and accident.

Weighty1

MattMattMattUK said:

Yorkshirelass123 said:

Hi. I've been paying for income protection insurance since 2017.  Currently I'm paying £37.46 a month which will pay out £600 per month should I not be able to work due to illness (with some limited exclusions). The claim period is full term to age 64 (I'm currently 55). I live alone and have a mortgage of £440 a month for another 12 years. I've recently become unemployed so I'm just weighing up my outgoings and although I feel this insurance is good value for money and a safety net should I become ill, I'm not 100% sure and just wanted some advice please. Any views/help would be much appreciated.

Surely on the basis that you are unemployed your income protection insurance has kicked in, so for the monthly payments of £37.46 pm they are paying you £600pm? On a net basis that would seem a good deal, at least in the short term. 

The  OP says in his post that he is covered if he cannot work due to illness so presumbly this is not the case.

OP, since the advent of Covid some insurers enabled policyholders to take payment holidays on their policies in certain circumstances.  It would be worth asking yours the question as to whether this is something they offer or not.  Personally, I'd never give up my income protection because I'm now in a position that I'd never be offered it again  That may not be the case for yourself but as it's been in place for 6-years it's likely to be far more costly if you did want to take it out again in the future.

Just some things to consider.

Yorkshirelass123

Hi, thanks for all your comments. The cover only pays out if it is for illness or accident so I'm not able to claim anything from this policy during my unemployment as that doesn't apply. I will check if they offer payment holidays though, so thanks for that advice. I'll try and keep paying towards it - thanks everyone for taking the time to respond.