Income insurance/Critical illness quotation

Venomspread3r

Hello there everyone I hope you're all doing well.
Just a quick one, I've been trying to work down my list of things I've long put off & came to my insurances more specifically income & critical illness cover.

So I put i went to lifesearch as I had heard good things about them and got a few quotes : for 1 year, 2 year, 5 year & full (23 years) and these are the quotes I got back (I'll attach quotes) but before that I'll give you some context or atleast the things they asked me when they called me.

Salary: £29500
Age: 42
Job: sports coach,(pe teacher) 
Smoke: no
Family illness: No 
Have I had an inlless: No 
Debt: None
Rent/utilities: £1300 (my half of rent bills etc)
Deferral: 6months as I get full sick pay for 6 months

I don't really have an emergency fund (about

Here are the quotes I got are these a little high? 
I'm more than happy with the critical illness part but the income insurance is putting me off slightly - ideally I'd want the longest I could claim for as I'd never be able to save that much of an emergency fund. 

Anybody else in a similar situation?
Should I do some more shopping about or do you think this is about right ? 

Ignore the 1 month deferred part apparently the quotes here ARE 6 month deferred but index linked is NOT on these.

Income Protection - £1,300 per month with a 1 month deferment and 12 month payment period over 23 years (Level)

Pays out a monthly income if you can’t work due to sickness or injury.

Tax free benefit.

Guaranteed premium.

 

Critical Illness with child cover - £29,500 over 23 years (Level)

Pays out a lump sum if you were to pass away or diagnosed with a listed illness within the term of the policy (see attached)

Pays out 50% if children are diagnosed with cancer, heart attack or stroke within the term of the policy.

Tax free benefit.

Guaranteed premium.

 

Premium - £34.20 per month (Subject to health questions)

 

Option 2

 

Income Protection - £1,300 per month with a 1 month deferment and 24 month payment period over 23 years (Level)

Pays out a monthly income if you can’t work due to sickness or injury.

Tax free benefit.

Guaranteed premium.

 

Critical Illness with child cover - £29,500 over 23 years (Level)

Pays out a lump sum if you were to pass away or diagnosed with a listed illness within the term of the policy (see attached)

Pays out 50% if children are diagnosed with cancer, heart attack or stroke within the term of the policy.

Tax free benefit.

Guaranteed premium.

 

Premium - £41.49 per month (Subject to health questions)

 

Option 2

 

Income Protection - £1,300 per month with a 1 month deferment and 60 month payment period over 23 years (Level)

Pays out a monthly income if you can’t work due to sickness or injury.

Tax free benefit.

Guaranteed premium.

 

Critical Illness with child cover - £29,500 over 23 years (Level)

Pays out a lump sum if you were to pass away or diagnosed with a listed illness within the term of the policy (see attached)

Pays out 50% if children are diagnosed with cancer, heart attack or stroke within the term of the policy.

Tax free benefit.

Guaranteed premium.

 

Premium - £60.39 per month (Subject to health questions)

 

Option 2

 

Income Protection - £1,300 per month with a 1 month deferment and full term payment period over 23 years (Level)

Pays out a monthly income if you can’t work due to sickness or injury.

Tax free benefit.

Guaranteed premium.

 

Critical Illness with child cover - £29,500 over 23 years (Level)

Pays out a lump sum if you were to pass away or diagnosed with a listed illness within the term of the policy (see attached)

Pays out 50% if children are diagnosed with cancer, heart attack or stroke within the term of the policy.

Tax free benefit.

Guaranteed premium.

 

Premium - £76.55 per month (Subject to health questions)

 
Any thoughts/advice would be massively appreciated thanks everyone.

DullGreyGuy

For PHI indexation won't impact your premiums on day 1, simply your sum insured and premium get indexed link so both go up by RPI each year

It's hard to follow the quotes you've gotten, seem to have several "option 2". I'd look to seperate the Life/CI and Income Protection premiums rather than look at the overall price as you can mix and match between the two. 

For me Income Protection is the most important component as it will cover all illnesses/injuries that stop you working and if you set it at an appropriate level you can continue to make pension contributions etc to have monies after it stops

I dont like CI as a product, it's poorly understood by most buyers and it doesn't age well. Buy it by all means but it's the one I would cut back on etc. A single years salary would be an unusually low sum insured for CI, though more have CI and no income protection. What is the aim of the CI at this level?

Pollycat

Not an eBay type question. 
Move requested.

Venomspread3r

Pollycat said:

Not an eBay type question. 
Move requested.

Apologies I had no idea this was posted here I can repost elsewhere 

dunstonh

Any thoughts/advice would be massively appreciated thanks everyone.

Both CIC and PHI can have the available policies classified under budget, standard and comprehensive style plans.   Those are not official classifications but when you look at the market, you can treat them as such.

So, you need to consider quality along with the price.   Some plans are little better than options of last resort and false economy.   So, don't look at price alone. 

Weighty1

The thing I noticed straight away is that you say you get full pay for 6-months yet the deferred period for the income protection is 1-month.  If you extend that deferred period to make your sick pay then the premiums would come down dramatically!

Also, you've put that you are a sports coach and then in brackets a PE teacher.  Which one have you used to quote?  

Personally, I'd always prioritise income protection over critical illness cover because a lump sum is nice to receive but nowhere near as important as ensuring you can pay the bills month in month out.

I'd also index-link the cover.  Contrary to what has been written, it can impact the premiums at outset BUT it's that important that you'd be mad not to.  I mean, do you think your bills/outgoings are still going to be £1,300 in 20-years time?

Finally, I'd be interested to know which insurer you are quoting for?  The text shows they only cover 3 children's critical illnesses.  I'm not aware of a company which does that and most will cover the majority of conditions adults are covered for at the very least.