Income Protection Insurance??

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damoC
damoC Posts: 62 Forumite
in Insurance & life assurance
Has anybody had any experience with Income protection insurance?
I ride a motorbike and only get SSP at work so think getting it would be a good idea ( correct me if I'm wrong).
What do I look out for (I've seen the waiting times, anything else)?Are there any recommended insurers?
I wish all insurance was as simple as getting motor insurance ha.

Cheers in advance

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  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    What do I look out for (I've seen the waiting times, anything else)?

    There are two types of income protection. Short term PPI (payment protection insurance) and long term PHI (permanent health insurance)

    PHI is vastly superior to PPI. However, PHI itself has a wide variety of plans that you could classify into three different levels of cover ranging from budget, standard and comprehensive (they are not official terms but just a way of thinking about them).

    The comparison sites mostly sell PPI as its limitations and higher profitability make it an easier sale. PHI is mostly sold by IFAs and whole of market protection advisers (typically mortgage brokers).
    Are there any recommended insurers?

    There is no one-size-fits-all best option.
    I wish all insurance was as simple as getting motor insurance ha.

    You do realise that there is actually quite a lot of differences in car insurance from the budget to the quality providers? Not as much as PHI or other types of insurance but still differences.
    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.
  • Janusian
    Janusian Posts: 26 Forumite
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    If your main concern is an accident then you could get Accident Insurance. It is usually cheaper than anything that covers Sickness and Involuntary loss of Employment as well. Obviously it only covers you if you have an accident within the policy period.
  • tacpot12
    tacpot12 Posts: 7,968 Forumite
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    PHI is one of the most important insurances to have and yet it is a rare person who has it. I had it for a long time but foolishly cancelled the policy when I went to work for an employer who had their own scheme. The scheme was withdrawn when they were taken over. Aviva will sell it to you direct, you don't need an IFA.

    Buy it asap. Defer the payments in the event of a claim for as long as possible (match the size of your emergency fund to cover the period of deferral) to keep the costs down.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Weighty1
    Weighty1 Posts: 1,181 Forumite
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    tacpot12 wrote: »
    PHI is one of the most important insurances to have and yet it is a rare person who has it. I had it for a long time but foolishly cancelled the policy when I went to work for an employer who had their own scheme. The scheme was withdrawn when they were taken over. Aviva will sell it to you direct, you don't need an IFA.

    Buy it asap. Defer the payments in the event of a claim for as long as possible (match the size of your emergency fund to cover the period of deferral) to keep the costs down.

    Who is to say that Aviva will be the most appropriate provider for the client?

    Whilst you may not need an IFA or independent adviser to assist you they are the ones in the best position to advise you on the most appropriate option for your needs
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    Aviva will sell it to you direct, you don't need an IFA.

    However, its not necessarily cheaper and you are reliant on Aviva be the best one for you. Lets just say that it probably isnt.
    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.
  • damoC
    damoC Posts: 62 Forumite
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    Yeah after cover in case of an accident so I can still meet all my monthly payments (seems a sensible thing to do).
    I'll have a look for some accident insurance, I had a look at aviva but only looks to be death, permanent injury, family and hospital. Those don't sound like what I'm after.
    All I want is the insurance to ultimatley pay my wage incase of an accident if I'm off work.
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