Is index linking worth it ?

Weighty1

Venomspread3r said:

Thanks for the feedback guys very much appreciated.
It seems a very marmite subject -ive spoken to a few work colleagues & they seem to follow the path of "you are 40 you've always been healthy - you look after yourself etc - I wouldn't be looking at income insurance especially when you get 6 months full pay then 6 months half pay" (I work in the public sector) and to a point I see what they are saying ..but the WHAT IF? is lingering in my head. 

Ask those same colleagues if they'll sign an agreement that they'll pay your mortgage/rent and all other fixed outgoings if you DO become long-term unable to work.

I've got various insurers and nearly all are indexed linked for the reasons that have already been mentioned.  The only time I normally recommend that index-linking isn't needed is when people arrange a lump sum payout for family protection purposes, such as ensuring there is money to raise their children.  In this instance, as time goes by, the money is needed over a shorter period of time and therefore the money doesn't need to be index-linked.  Also, if income protection is being taken purely to cover a mortgage then indexation isn't really needed.

But overall, I'm a big advocate of indexing plans

Venomspread3r

Thanks for all the feedback/help guys got my insurances all sorted today thanks - I feel a lot better now with some extra security behind me.