[Help] Wage protection insurance

[Cheshire Cat]

I had it when I had a mortgage, but never needed it. It felt very belt and braces and with hindsight the only reason I bought it was a very persuasive broker. Otherwise I wouldn't have done it. Also it wasn't cheap. I think it would only pay out for a maximum one year

It depends on the your circumstances - for instance my employer will pay full sick pay for six months, then half for another six months (or something similar - the exact details may have changed recently). If I was made voluntarily redundant, they would currently pay me a year's salary to go. If I was fired I would be stuffed. If I had to leave for long term health reasons, but couldn't retire on health grounds, I would be stuffed.

There is always Universal Credit to fall back on


........isn't there?

 

[Sirnormangall]

Fair enough. Good and bad in every industry. But a BIG chunk of the insurance industry is a scam.

No great surprise that the insurance industry still has a poor reputation with many people after 25 years of almost constant misselling issues: pensions, endowments, PPI. But most companies have now cleaned up their act, forced by tighter regulation. As others have said, whether any policy is suitable depends on many things including your attitude to risk etc and you may well be better off putting the money aside for a rainy day than paying insurance premiums.

As some one else remarked, this is a dull subject......I must get out more.

 

[Barham's tash]

Fair enough. Good and bad in every industry. But a BIG chunk of the insurance industry is a scam.

Trading on fear isn’t quite the same as a scam but in the sense their policies are worded in such a way so as to mitigate THEIR risk and not yours would be closer to the truth.

My wife has just taken the leap of faith on being made redundant to start her own business and has insisted she take out such a policy to cover a nominal monthly sum that would at best keep the wolf from the door.


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[Bodian]

My wife & I took out income protection insurance some 20 years ago when we bought our house. It's around £40 a month each.

Five years ago my wife had to leave her job because of chronic health issues. She'll never work to that level again, but can hold down shorter-term far less well-paid jobs.

The Insurance company (Zurich) make up what she earns to 50% of what it was when she had to leave her substantive job. This will go on till she's 60 (which was the retirement age for women when we took it out).

I would rather we didn't need it - but in our circumstances it has been well worth it. Last year alone, they paid out around the amount we have both paid in over the entire length of the policy so far.