[Help] Wage protection insurance

[albionfan37]

Anyone have any advice regarding companies prices etc?

 

[Icy Gull]

I no longer have it as I took it out to cover me until my mortgage was paid off. My stand out memories are that the premium was around 8- 10% a month of the wage I was trying to protect and that it didn’t kick in until about six weeks from the date of loss of wages. It had a very very small final value too. It had quite a comprehensive proposal form to re health, smoking and drinking habits too.

No doubt someone with current knowledge and company recommendations will be along soon. I think mine was with Norwich Union/Aviva

 

[albionfan37]

I no longer have it as I took it out to cover me until my mortgage was paid off. My stand out memories are that the premium was around 8- 10% a month of the wage I was trying to protect and that it didn’t kick in until about six weeks from the date of loss of wages. It had a very very small final value too. It had quite a comprehensive proposal form to re health, smoking and drinking habits too.

No doubt someone with current knowledge and company recommendations will be along soon. I think mine was with Norwich Union/Aviva

Thanks for the help mate much appreciated

 

[wellquickwoody]

Total rip off in my view. Just see how much it would cost each month and put that into a seperate bank account. If you need it one day, so be it, if not you have a nice nest egg.

 

[Herr Tubthumper]

Total rip off in my view. Just see how much it would cost each month and put that into a seperate bank account. If you need it one day, so be it, if not you have a nice nest egg.

:rollseyes:

What happens if their wages stop after one week?

In my opinion insurance depends on people’s circumstances. My general rule of thumb is I insure against things I cannot afford to financially replace that easily. Phone, no. Hoover extended warrant, no. Travel, no. House, yes. Health going down the pan, yes.

 

[wellquickwoody]

:rollseyes:

What happens if their wages stop after one week?

In my opinion insurance depends on people’s circumstances. My general rule of thumb is I insure against things I cannot afford to financially replace that easily. Phone, no. Hoover extended warrant, no. Travel, no. House, yes. Health going down the pan, yes.

But income protection usually has a finite, be it value or time, and it normally isn’t very much of either. These schemes will normally have exclusion periods at the start as well. How long is a mortgage these days, 25 years, 35 years, maybe 50 years? If taking one on you probably feel reasonably financially secure, nothing is certain in life, but you would hope when borrowing hundreds of thousands that the people involved have some idea of what the next 5 years might bring. So if you can get through the first five years of a mortgage and save the ‘insurance’ premiums instead you will probably be ahead, as the scheme would probably only pay you out for around two years anyway.

Health insurance is another kettle of fish, and is an utter minefield. But I would never, ever, ever trust an insurance company to have your best interests at heart, or to play fair. Those companies really are the leeches of modern society, utter scum.

But apart from that, go ahead, fill ya boots

 

[Herr Tubthumper]

But income protection usually has a finite, be it value or time, and it normally isn’t very much of either. These schemes will normally have exclusion periods at the start as well. How long is a mortgage these days, 25 years, 35 years, maybe 50 years? If taking one on you probably feel reasonably financially secure, nothing is certain in life, but you would hope when borrowing hundreds of thousands that the people involved have some idea of what the next 5 years might bring. So if you can get through the first five years of a mortgage and save the ‘insurance’ premiums instead you will probably be ahead, as the scheme would probably only pay you out for around two years anyway.

Health insurance is another kettle of fish, and is an utter minefield. But I would never, ever, ever trust an insurance company to have your best interests at heart, or to play fair. Those companies really are the leeches of modern society, utter scum.

But apart from that, go ahead, fill ya boots

I’m not sure what point you are trying to make. There’s risk involved whatever you decide. The OP has decided, for his peace-of-mind he prefers to pay to mitigate the risk as much as possible. You’ve chosen the slightly more riskier “5 years”. What gives?

Health insurance is compulsory here; what problems have you encountered?

PS death, taxes, female university hockey team are all certainties.

 

[wellquickwoody]

I’m not sure what point you are trying to make. There’s risk involved whatever you decide. The OP has decided, for his peace-of-mind he prefers to pay to mitigate the risk as much as possible. You’ve chosen the slightly more riskier “5 years”. What gives?

Health insurance is compulsory here; what problems have you encountered?

PS death, taxes, female university hockey team are all certainties.

Nothing really gives, just offering an opinion.

Problems on health insurance? None so far. Trust in the insurance industry as a whole, absolutely zero because of previous dealings. Less trustworthy than estate agents and used car salesmen in my view.

 

[blue-shifted]

About the period before the payout starts, remember most employers (if you have one) will continue to pay your wages for a period of time, so you shouldn't lose out. Most insurers let you select a period in keeping with your employers sickness policy

 

[studio150]

Trust in the insurance industry as a whole, absolutely zero because of previous dealings. Less trustworthy than estate agents and used car salesmen in my view.

UK Insurance industry?

 

[CheeseRolls]

I think I am going to have to have a lie down, after reading a couple of WQW posts and finding myself agreeing!

These policies are riddled with exceptions, not the least being that you have to be out of work for a set time period, before you can claim. The starting point is DEFINETLY put the money away. When you have the money saved that will cover your outgoings for say three months, take another look at these policies and decide, what you could do to find work within 3 months, if you lost your job. This should include do you have a partner who does or could work (watch this one as an exclusion on pay out). After that decide if you still think there is any value in taking out a policy. We all have different attitudes to risk.

House and Contents yes, car yes, pet yes travel yes, extended warranties (only if thrown in).

Travel Insurance costs sod all really, the downside of a major claim is thousands.
Pet Insurance is a game where emotion tops logic
Boiler servicing costs me less than £80 a year, I have someone local and reliable and if I get a major problem, I expect he will look after me as a good customer.

 

[LlcoolJ]

I think I am going to have to have a lie down, after reading a couple of WQW posts and finding myself agreeing!

These policies are riddled with exceptions, not the least being that you have to be out of work for a set time period, before you can claim. The starting point is DEFINETLY put the money away. When you have the money saved that will cover your outgoings for say three months, take another look at these policies and decide, what you could do to find work within 3 months, if you lost your job. This should include do you have a partner who does or could work (watch this one as an exclusion on pay out). After that decide if you still think there is any value in taking out a policy. We all have different attitudes to risk.

House and Contents yes, car yes, pet yes travel yes, extended warranties (only if thrown in).

Travel Insurance costs sod all really, the downside of a major claim is thousands.
Pet Insurance is a game where emotion tops logic
Boiler servicing costs me less than £80 a year, I have someone local and reliable and if I get a major problem, I expect he will look after me as a good customer.

I know. I thought someone must have hacked his account. Actually....

 

[LlcoolJ]

Re the OP. I looked into this a while ago but being self employed it was ridiculously expensive for the benefits provided. Shitloads of money to have to wait three months to get paid and then only a crap percentage of what I was earning. I saw SCAM in big neon letters.

The flip side being that one of my neighbours is a medical rep and was laid off a couple of years ago. The insurance (and his wife's wage as a nurse) saved their house as he ended up out of work for over a year.

It only paid about £1k a month as he'd taken out a policy for that, but it kept them afloat til he eventually got a new job.

Swings, roundabouts and scumbag insurance companies.

 

[Blue&WhiteSea]

Worked for a couple of income protection companies previously. They can be very good policies to take out but you need to get one that meets your individual requirements in terms of deferred period, definition of incapacity etc.
Please don't confuse these policies with payment protection or accident sickness and unemployment cover which has a limited payment period, proper income protection normally pays until retirement.
They are expensive if buying as an individual but the potential liability to the insurer can be huge
Group policies provided by your employer are much better value as the risk is pooled by all the members of staff insured under the single policy.

I hate it when people talk shit about insurers, the majority of issues are caused by inappropriate policies being bought or people not properly understanding the cover their policy provides!

 

[LlcoolJ]

I hate it when people talk shit about insurers, the majority of issues are caused by inappropriate policies being bought or people not properly understanding the cover their policy provides!

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

 

[wellquickwoody]

UK Insurance industry?

Yep, from my past dealings. It is a business model designed to make a profit from giving out less than is paid in. Simple maths equation, less payout = more profit.

 

[Uncle Spielberg]

Worked for a couple of income protection companies previously. They can be very good policies to take out but you need to get one that meets your individual requirements in terms of deferred period, definition of incapacity etc.
Please don't confuse these policies with payment protection or accident sickness and unemployment cover which has a limited payment period, proper income protection normally pays until retirement.
They are expensive if buying as an individual but the potential liability to the insurer can be huge
Group policies provided by your employer are much better value as the risk is pooled by all the members of staff insured under the single policy.

I hate it when people talk shit about insurers, the majority of issues are caused by inappropriate policies being bought or people not properly understanding the cover their policy provides!

This. LV are good

 

[PILTDOWN MAN]

Very expensive. I done years ago when self employed. Problem was after a while I realised exactly how much I “on paper earned ” after the deductions meant I’d get bugger all. All for £140 a month. I ditched it

 

[blue-shifted]

Worked for a couple of income protection companies previously. They can be very good policies to take out but you need to get one that meets your individual requirements in terms of deferred period, definition of incapacity etc.
Please don't confuse these policies with payment protection or accident sickness and unemployment cover which has a limited payment period, proper income protection normally pays until retirement.
They are expensive if buying as an individual but the potential liability to the insurer can be huge
Group policies provided by your employer are much better value as the risk is pooled by all the members of staff insured under the single policy.

I hate it when people talk shit about insurers, the majority of issues are caused by inappropriate policies being bought or people not properly understanding the cover their policy provides!

Yes mate. IP insurance from a reputable provider is not a rip off and not a scam. Not saying it's cheap. There's a relatively high level of fraud on this type of insurance (as compared to life insurance where the payout is contingent on a death certificate) and that gets built into the price. Not massive profit margins on this.

My personal view is that Income Protection is generally a better bet than critical illness cover, but they are different things, so will suit different people.

Going to stop talking as this is an incredibly dull subject

 

[Weststander]

This. LV are good

LV seem good all round ... we have home insurance, term life assurance and motor insurance with them. Not planned like that, just as a result of individual research each time, low premiums. Excellent customer service when motor claims were made.