critical illness V income protection

[LDFerguson]

I have just taken out an income protection policy with insurety.

It pays me 60% of my gross income for up to 2 years if i cant work due to accident, sickness or busniess failure or redundancy (being self emplyed this was needed i thought.) I also get cash for each night in hospital due to accident and a lump sum for serious injury or death. Heres' the kicker though - if i remain claim free for 12 years i get every single penny i have paid in back.

I thought it was great cover anyhow, mainly due to the fact that i was paying for incme protection for 6 years with another company but was never going to see my money again unless i had a claim.

I have the email address and contact details of the bloke i was dealing with if anyone wants them.

Paying a claim for only two years is very poor compared with most Income Protection policies which pay you until you are able to go back to work, or your chosen retirement age.

How do they define disability? Is it "unable to carry out your own job" or is it something far more restrictive?

 

[PaddyW]

I'm 27, and a smoker. I have serious illness cover through my mortgage protection. Salary circa 2900 per month. Is it worth me taking income protection at my age. What would be the view of others? I've gottena quote from one company of 17.20 after relief to get 2097.70 monthly benefit, 26 weeks deferred period, up to 60th birthday with guaranteed premiums and indexation. How does that sound?

 

[LDFerguson]

I'm 27, and a smoker. I have serious illness cover through my mortgage protection. Salary circa 2900 per month. Is it worth me taking income protection at my age. What would be the view of others? I've gottena quote from one company of 17.20 after relief to get 2097.70 monthly benefit, 26 weeks deferred period, up to 60th birthday with guaranteed premiums and indexation. How does that sound?

1. Is the €2,900 monthly salary gross or net?
2. What's your occupation?
3. How long will your employer pay you if you're out sick?

 

[RS2K]

Sounds ok. For more quotes consult a decent broker.

Might also be worth getting a review done. If you have PHI in place, and have VHI/BUPA/VIVAS (all of which enjoy tax relief) is a CI policy really necessary?

Just a thought.

 

[RossieGooner]

Paying a claim for only two years is very poor compared with most Income Protection policies which pay you until you are able to go back to work, or your chosen retirement age.

How do they define disability? Is it "unable to carry out your own job" or is it something far more restrictive?

Doctors cert to say unable to work. Any of those income protection policies u mention pay u back full premiums paid if you dont make a claim ?

 

[ClubMan]

Any of those income protection policies u mention pay u back full premiums paid if you dont make a claim ?

Why would they? The premiums are paying to insure the risk involved - not going into a savings fund. Products which bundle insurance/assurance and savings are often poor value for money anyway.

 

[Bronte]

There was a really good debate on RTE radio yesterday with Derek Davis and the head of Canada Life, anyone thinking of getting critical illness type of insurance should listen to it. You must disclose EVERYTHING you have ever been to the doctor for even if the results show that everthing is ok. One guy was refused his claim because he had a cholestrol test that was ok, but he hadn't told them he had had the test.

 

[PaddyW]

1. Is the €2,900 monthly salary gross or net?
2. What's your occupation?
3. How long will your employer pay you if you're out sick?

Hi LD.

1. 2900 is net
2. I'm an office manager
3. well, probably up to 4/5 months I think

Thanks

 

[LDFerguson]

Doctors cert to say unable to work. Any of those income protection policies u mention pay u back full premiums paid if you dont make a claim ?

No, but when looking at insurance to protect your livelihood, I'd be a lot more interested in what happens in the event that you DO claim. If you're, say, 30 years of age and get the terrible news from your doctor that you're never going to be able to work again, what use is a policy that will pay your claim for a maximum of 2 years, compared with one that will pay your claim for 30 or 35 years?

Also had a quick look at the policy conditions and website and note that Insurety exclude back problems and mental or nervous illnesses. The exclude pre-existing conditions (or anything related to a pre-existing condition) for two years. From what I can see, their premium doesn't qualify for tax relief, although a claim lasting longer than a year may be taxable. Other income protection policies qualify in full for tax relief at your highest rate on the premium, which can knock up to 41% off the cost, although a claim will also be taxable.

 

[PaddyW]

LD, not sure if you saw my reply to your questions so here they are again!

1. 2900 is net
2. I'm an office manager
3. well, probably up to 4/5 months I think

Thanks

 

[LDFerguson]

LD, not sure if you saw my reply to your questions so here they are again!

1. 2900 is net
2. I'm an office manager
3. well, probably up to 4/5 months I think

Thanks

I get the exact same premium when I do the quote myself, so it's an excellent quote. The tax relief assumes tax relief at the higher 41% rate.

 

[PaddyW]

IC will cover me in the event,only, of accident or illness preventing me from working is it?

 

[LDFerguson]

IC will cover me in the event,only, of accident or illness preventing me from working is it?

Yes, ANY accident or illness that causes you to be unable to do YOUR OWN job for more than 26 weeks.

 

[demon 90]

Paying a claim for only two years is very poor compared with most Income Protection policies which pay you until you are able to go back to work, or your chosen retirement age.

How do they define disability? Is it "unable to carry out your own job" or is it something far more restrictive?

 

[demon 90]

I have just taken out an income protection policy with insurety.

It pays me 60% of my gross income for up to 2 years if i cant work due to accident, sickness or busniess failure or redundancy (being self emplyed this was needed i thought.)

insurety will only pay out on redundany for self employed if your business goes completly to the wall, and dept collectors are at your door: what good is that?

 

[NorthDrum]

I have just taken out an income protection policy with insurety.

It pays me 60% of my gross income for up to 2 years if i cant work due to accident, sickness or busniess failure or redundancy (being self emplyed this was needed i thought.)

insurety will only pay out on redundany for self employed if your business goes completly to the wall, and dept collectors are at your door: what good is that?

Sounds more similar to Mortgage Income replacement then Income Protection.

With Income protection (mainstream generic referance here) you can get up tp 66.67% of your salary covered (subject to limits of course). The usual policys cover most illnesses and injuries , but dont necessarily have limits on payouts (ie 2 years in your case). This is something to factor in when deciding whats the best conditions in a policy. The redundancy part of this policy is an obvious bonus but like mentioned earlier what happens if you are unable to work for the rest of your life? After two years you have to rely on the state !

Does your cover include if you are just simply unable to do your job or any job? E.G. if you are a taxi driver and lost your legs, you might not be able to drive a taxi again, but you could get a job in an office etc.

 

[pacu]

I have just taken out an income protection policy with insurety.

It pays me 60% of my gross income for up to 2 years if i cant work due to accident, sickness or busniess failure or redundancy (being self emplyed this was needed i thought.) I also get cash for each night in hospital due to accident and a lump sum for serious injury or death. Heres' the kicker though - if i remain claim free for 12 years i get every single penny i have paid in back.

I thought it was great cover anyhow, mainly due to the fact that i was paying for incme protection for 6 years with another company but was never going to see my money again unless i had a claim.

I have the email address and contact details of the bloke i was dealing with if anyone wants them.

 

[pacu]

Sorry to disappoint you on the 12 Year Money Back Guarantee, RossieGooner, but according to the Policy Document, to hand, '25% of the premiums are repayable after you have held you plan, claim free, for 12 years.'
What concerns me more though, Insurety does not cover 'mental illness (including stress).' or accident or sickness 'due to backache or whiplash (unless supported by radiological evidence).'
If anyone knows of such a policy that covers both, I would be delighted hear about it.

 

[Jimbobp]

Friends first' Income protection policy covers both these (as does Irish life). Depression & back problems are the twon most common reasons people miss work.

 

[pacu]

Thank you Jimbobp, I'll check those two out.