Help me pick income protection or critical illness

bullhorn3952

Hi,

Please can you help me to decide which IP and/or CI might be the best for me:

 - 40 years old, single, no kids

 - £145k mortgage

 - £57k savings invested in S&S

 - £50k salary

 - Work sick pay is 6 months full + 6 months half (inclusive of SSP)

 - Office job

Current IP policy:

 - Level cover, £1,450pm for 2 years, for £12.06 per month

New IP options (all level cover, 2 year cover still, 12 months deferred, guaranteed premiums):

Option 1:

 - £2,000pm for £12.34pm

Option 2:

 - £2,500pm for £14.95pm

New IP options (all level cover, now upgraded to full cover, 12 months deferred, guaranteed premiums):

Option 3:

 - £1,500pm for £35.71pm

Option 4:

 - £2,000pm for £46.26pm

Option 5:

 - £2,500pm for £56.14pm

New CI options (all level cover, core cover, 20 year term):

Option 6:

 - £50k for £27.34pm (£29.77pm if 25 year term)

Option 7:

 - £100k for £53.71pm

Or upgraded cover:

Option 8:

- £50k for £34pm (£37.35pm if 25 year term)

New CI option (decreasing CI cover to match mortgage)

Option 9:

- £145k over 20 years for £50.17pm

Or something completely different, I'm open to all suggestions and would really appreciate any guidance or personal experience that people can share.

Thank you

Skintsaver

Income protection look at money https://www.money-minder.com/ there's other sites aswell punch in exactly the same details and see what they come out at, I more than halfed the monthly expense than what my mortgage Brooker set up for a better cover.

dunstonh

Insufficient details to answer.

Effectively, you can put all the different CIC and PHI policies into  budget, standard and comprehensive categories.    Those are not official categories but the variety is so great, that you can consider plans under those three headings.

You have only given us the pricing.  You haven't mentioned the quality of the plan to go with that pricing. The one thing you must never do with CIC or PHI is filter with price as your first consideration.

DullGreyGuy

So what's the plan if you have a 10 year illness? You get an average of 2/3 of your salary for the first year, £1.5k for the next 2 years... what about the next 7 years?

kimwp

Do you get any income protection through work or pension fund?

Marvel1

I would want to know the reasons they won't pay out.