Income protection insurance ??

[Noo]

Hi Guys

I am a mobile beauty therapist and have had income protection insurance - covers accident and sickness - in the event I can't work due to accident or sickness. The underwriters just cancelled policy and cheapest one I can find which pays £200/wk after 4 week deferred period is £18.99/mth.

I know a couple of mobile hairdressers and they don't have any protection - do any of you have this kind of insurance - if so, who with and how much do you pay (if you don't mind me asking!?).

Also - if you don't - why don't you?

Thanks!!!
A very undecided person...

 

[Zo Zo]

I used to work in financial services and just wanted to say, make sure you read the small print, because, if the policy covers you for £200 pw, I think you'll find, it won't actually pay out that much unless you have accounts to prove you have a net profit of that amount. From memory, I think they also take off the state invalidity benefit, so you would have to have provable income of £270 pw. This basically stems from the fact, you can't legally profit from an insurance claim.

You also need to check whether the policy pays out if you are unable to carry out your job or any job. Because of course there is a difference.

Sorry if I'm sounding sceptical! It's just that having worked in the industry I know how hard it is to get claims paid sometimes.

I personally don't have any income protection insurance. But that is because, my personal circumstances mean that I have some unearned income i.e. rent, a partner who can afford to support me, parents both still alive and solvent etc etc. So I guess my personal view is, if anything serious happened to me so I couldn't work, I would have to undergo a dramatic lifestyle change anyway.

One last thing, income protection insurance usually falls under the umbrella of 'life and pensions insurance' whereas you could also look at personal accident insurance which is a 'general' insurance (like car and household insurance is) and it is a lot cheaper.

Hope that helps!

 

[Zo Zo]

Thought of something else - make sure you are aware of how long the policy pays out for, i.e. is it to age 60 or 65, or does it just pay out for 12 months...

Also, if you have savings that you could live on for longer than 4 weeks, you could make the deferred period longer, in order the bring the cost down.

My golden piece of advice for anyone, is to have savings that equate to at least 3 months income.

 

[Kim Lawless]

One of my clients is a senior officer for one of those companies and from what he tells me, they will do everything in their power to NOT pay out. I wouldn't bother myself. xxx

 

[gemsie1983]

Or another thought just put away the £20 per month and you will be surprised how much you save, then if the worst happens (god forbid) you have that to fall back on

 

[Noo]

Thanks to you all who took time to reply.

I think you're all right. My hubby is away to start offshore and if worst came to worst I know my parents could help.

I don't think it's worth the money and reckon I should do sensible thing and start putting money away.

Thanks again for taking time to reply to me :smack:

 

[Curly Bamboo]

Thought of something else - make sure you are aware of how long the policy pays out for, i.e. is it to age 60 or 65, or does it just pay out for 12 months...

Also, if you have savings that you could live on for longer than 4 weeks, you could make the deferred period longer, in order the bring the cost down.

My golden piece of advice for anyone, is to have savings that equate to at least 3 months income.

Thanks ZoZo excellent advice. I posted a question last week got no response (probably was poorly phrased however, you have thoroughly answered all my concerns about income protection insurance. If you don't mind I am going to save your info so that next time I think about getting insurance I will know the ins and outs of income protection insurance.