# Income Protection



## daithid2000 (11 Aug 2005)

Anyone got any advise on taking out an Income Protection policy and who would offer the best deals?   I am a 28y/o with a mortgage and myself and the Mrs were thinking that one of us should take out a policy.


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## RainyDay (11 Aug 2005)

daithid2000 said:
			
		

> Anyone got any advise on taking out an Income Protection policy and who would offer the best deals?   I am a 28y/o with a mortgage and myself and the Mrs were thinking that one of us should take out a policy.


Do you have any similar protection through either of your employers' pension scheme?


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## daithid2000 (12 Aug 2005)

I have a Disability Scheme on my pension but that doesn't come into effect until I am out of work for 26 weeks.


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## RainyDay (12 Aug 2005)

daithid2000 said:
			
		

> I have a Disability Scheme on my pension but that doesn't come into effect until I am out of work for 26 weeks.


Wouldn't your normal sick leave cover you for an initial period?


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## LDFerguson (12 Aug 2005)

If the Disability Scheme in work is an Income Protection policy coming into effect after 26 weeks, three things come to my mind...

(1) In many cases where an employer is providing an Income Protection scheme, it's tailored to come into play after they stop paying you, which I think is the question Rainy Day is getting at. You may find that your employer will pay you for six months and then the Income Protection kicks in. 
(2) Even if it doesn't, you only need to build up a "Rainy Day"  savings fund to tide you over for the period between when your employer stops paying you and 26 weeks when the Income Protection scheme kicks in. 
(3) Check the terms and conditions of your employer's Income Protection scheme. You may find that it only covers a percentage of your basic salary or a percentage of your pensionable salary, either of which may be lower than your actual earnings (particularly if you earn bonuses, commission, overtime etc.) If so, it might be worth your while investigating a "top-up" Income Protection policy to bridge the gap. 

You don't mention if your wife is in paid employment or whether or not she has Income Protection in her place of work. 

Liam D Ferguson
www.ferga.com


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## daithid2000 (12 Aug 2005)

Was just checking the policies for work the the following is stated:   It is <my employers> policy to pay staff during short-term absence due to illness. However 20 days absence either consecutive or cumulative in any 12 month period is considered to be long term and <my employer> may exercise their right to cease payment until a consistent and sustained improvement has been demonstrated.

This would probably leave me with 5 and bit months of no pay if something serious was to happen.

The other half is a teacher, but we are thinking of just getting one salary protected for the moment.


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## LDFerguson (12 Aug 2005)

If your Disability Scheme *adequately* covers your income after 26 weeks (check the terms and conditions of it) you don't need another Income Protection plan to cover your salary.  You just need to build up a savings fund to tide you over for the 5 months or so.


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## cathybun (12 Aug 2005)

If you do end up needing it, I believe Hibernian, Irish Life and Tesco are some of the cheapest (but I don't know about best) in the market


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## ClubMan (13 Aug 2005)

As with any insurance read the terms & conditions of the policy document very, very carefully to apprise yourself of what is and is not covered and in what circumstances the policy will pay out. Never compare insurance policies on price alone.


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## harvey (13 Aug 2005)

cathybun said:
			
		

> If you do end up needing it, I believe Hibernian, Irish Life and Tesco are some of the cheapest (but I don't know about best) in the market


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