Income protection insurance
Elegant_Ju
Posts: 1 Newbie
Been offered an income assured enhanced policy from Cirencester Friendly Society. Each monthl premium goes up starting at aged 50 £26.60 and by the time I’m 67 it will be £87.20 per month.
Is this usual?
Will pay me £210 per week if I cannot Work.
Is this usual?
Will pay me £210 per week if I cannot Work.
0
Comments
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Is this usual?
it is for inflation/indexed plans. If you want the benefit to annually increase then the premium will do as well.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
A lot of Cirencester plans are "age-banded" which means the premium will increase in line with your age. This is actually a very fair way of offering premiums as a 30yr old is likely to go off work than a 60yr old so a policyholder is only paying for the risk they present in that particular year.
The downside is they typically become very expensive as times goes by. A lot of providers will offer non-age banded premiums which are guaranteed (aside from a small increase each year to cover inflation linked increases in cover).
Did you take financial advice on this? If so, did the adviser not explain about both age banded and non-age banded options?
Cirencester do have an excellent claims history by the way, so they are very good at paying out!0
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