Income + life insurance

loredanao

Hi, new to UK and trying to get income and life insurance, but don’t know what I need to look for to get the best coverage. I am a registered nurse, 49 yrs of age, have no mortgage and would like my family included. I only work as agency, so 0 hours contracts. I’d appreciate feedback if possible. Thanks so much everyone!

DullGreyGuy

Income protection comes in two flavours... an annual policy without underwriting at point of purchase offering cover for 1-2 years (also known as ASU or PPI) and a long term policy with underwriting at point of purchase offering claims cover for fixed number of years or until retirement age.  

The former is sold direct on an unadvised basis but many pulled out during Covid and haven't returned. The later, and particularly higher quality versions, is sold mainly on an advised basis and so you'd approach a Protection Broker. 

Life is a fairly basic product and can be bought either advised or non-advised. If you're using a broker for income protection you may as well have them do the Life too.

Mark_d

You have a 0 hours contract, so the guaranteed income under your contract is £0?

So you're looking for insurance which will pay out £0 if you're unable to work through accident or sickness?

Life assurance is a standard product that pays out a lump sum when you die, subject to certain condition.  You pay more depending on how much you want the policy to pay out.

Weighty1

How new to the UK?  Most income protection policies which are medically underwritten and require health questions to be answered when applying require the applicant to have been resident in the UK for at least 2-years and to have been registered with a GP practice in the UK for that length of time as well.

AIG used to be an exception to this but they have ceased accepting new application following their takeover by Aviva.

As mentioned above, the 0 hours contract could also be a problem, depending on how long you have been in the UK.  I'd recommend speaking to an insurance specialist and let them do the research so that you take cover with the right insurer first time.

There shouldn't be any major issue getting life insurance, although some insurers can be less than willing to accept applicants unless they have indefinite leave to remain.

DullGreyGuy

Mark_d said:

You have a 0 hours contract, so the guaranteed income under your contract is £0?

So you're looking for insurance which will pay out £0 if you're unable to work through accident or sickness?

Income protection can be based on average earnings not just contractual minimum pay as long as you have sufficient history of pay

dunstonh

Housewives can also have income protection despite not having a paying job.