Income Protection - £3k Enough?

IAMIAM

I have had a policy with L&G since the age of 32, now 40...

£3k benefit fixed per month until age 65, deferred for 6 months, fixed premium of £328 per annum fixed until age 65. 

Is it wise to review/change this now before my premiums start to become hefty?

I do not see my yearly income heading towards 100k anytime soon, so feel £3k per month is probably about right (even with pay increases etc for the next 10 years). Anyone in the same position who has changed, got a better product or even cancelled?

I have L&G Life Insurance and CIC of 200k and work pension and life insurance of 3 times salary too.

DullGreyGuy

Presumably you had medical conditions or lifestyle factors? 

Premiums look very high, my Avia policy commenced when I was 33 to pay £3.5k to 65 deferred 6 months for £129. The difference however is also index linked it so premiums and benefits increase each year both by RPI and so now 11 years later its over £5k on £227 premiums, avoids the benefit being eroded over time. Yours was taken out 3 years after mine but surprised rates almost tripled in that time esp as you were younger at inception. 

Ultimately there is no harm in getting quotes and making decisions based on the outcome.

csgohan4

i took out Income protection at 5k a month no index linked, cost 70 quid a month fixed , I feel like I got ripped off. It was started 7 years ago.  Also Aviva incidentally, got it through a whole of market broker

DullGreyGuy

csgohan4 said:
Also Aviva incidentally, got it through a whole of market broker

Mine also via whole of market broker however had loadings for both pre-existing conditions and lifestyle... on the basis was originally declined when going via an IFA was ultimately pleased with the outcome. 

If its own occupation or any occupation makes a big difference in premiums too

IAMIAM

DullGreyGuy said:

Presumably you had medical conditions or lifestyle factors? 

Premiums look very high, my Avia policy commenced when I was 33 to pay £3.5k to 65 deferred 6 months for £129. The difference however is also index linked it so premiums and benefits increase each year both by RPI and so now 11 years later its over £5k on £227 premiums, avoids the benefit being eroded over time. Yours was taken out 3 years after mine but surprised rates almost tripled in that time esp as you were younger at inception. 

Ultimately there is no harm in getting quotes and making decisions based on the outcome.

I thought £328 fixed per annum to pay for £3k per month was cheap!!! (Own Occupation and 6 month deferral)

Weighty1

DullGreyGuy said:

Presumably you had medical conditions or lifestyle factors? 

Premiums look very high, my Avia policy commenced when I was 33 to pay £3.5k to 65 deferred 6 months for £129. The difference however is also index linked it so premiums and benefits increase each year both by RPI and so now 11 years later its over £5k on £227 premiums, avoids the benefit being eroded over time. Yours was taken out 3 years after mine but surprised rates almost tripled in that time esp as you were younger at inception. 

Ultimately there is no harm in getting quotes and making decisions based on the outcome.

Could the cost difference be due to the EU Gender Directive coming into force between yours and IAMIAM's going into force?

Personally, I don't think their premiums look high at all.  In fact, I think yours are incredibly cheap.  Less than £20/month for £5k/month of benefit.  I don't think I've ever seen such a low cost option.  Is it an option with a maximum 2yr claim period?

wjr4

IAMIAM said:

DullGreyGuy said:

Presumably you had medical conditions or lifestyle factors? 

Premiums look very high, my Avia policy commenced when I was 33 to pay £3.5k to 65 deferred 6 months for £129. The difference however is also index linked it so premiums and benefits increase each year both by RPI and so now 11 years later its over £5k on £227 premiums, avoids the benefit being eroded over time. Yours was taken out 3 years after mine but surprised rates almost tripled in that time esp as you were younger at inception. 

Ultimately there is no harm in getting quotes and making decisions based on the outcome.

I thought £328 fixed per annum to pay for £3k per month was cheap!!! (Own Occupation and 6 month deferral)

I don’t think that cost is excessive but you’ll never be able to compare the quotes with anyone as like for like as it all depends on the factors when you purchased the policy.