# PHI Vs Income Protection Vs Serious Illness Cover



## Davey T (3 Feb 2004)

Hi,

    I have been self employed for a few years now and have no form of insurance to cover me if God forbid I get sick or something. I have been putting this off for a while now as I am not sure which is the best product to go for. Can anyone please enlighten me and maybe recommend one of the above for me that would be worth looking at. Which is the best? Who are the best etc. Thanks in advance.

David


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## Freddie (4 Feb 2004)

Without knowing your full facts it is hard to make a recommendation but you should probably look into insuring yourself for 75% of Salary/Income with PHI and take out a limited amount of Specified Illness cover.

53% of new claims submitted to Friends First, for PHI, in 2002 were for psychatric and orthopaedic disorders. 30% were for cancer and cardiac disorders.

Talk to someone like Liam Ferguson www.ferga.com as you probably need more advice than the above.


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## gerry (7 Feb 2004)

*all 3 !*

All 3 products have a need. 

Take stock of your situation. How long can you live if you had no income coming in ?

Do you have a hefty mortgage ?

Life cover bought under the Personal Pension Term Insurance banner will provide tax relief.

PHI cover will also provide tax relief. Cover is payable after 13,26 & 52 weeks. You have to be pretty sick to be out for any of these I feel and I would recommend to maximise cover by going for a deferral period of 52 weeks so if disabiltiy occurred for example you would be covered. if you are going for a pension , put premium protection or waiver or premium on the policy also so if you are out of work the insurance company will continue to pay your pension premium.

Serious illness rates have gone up in the last couple of years quite substantially and there is a very great chance that guaranteed premium rates will be gone by the end of the year. However standalone serious illness is a waste of time as an Accelerated (death/serious illness) is in many instances cheaper. The difference ? 

On a standalone policy if you had a heart attack and did not survive the required 14 days only about 5% of the claim  or nothing will be paid out.

Get 3 quotes for each policy and cross multiply and it will give you a better idea but then again if you do not know what you are looking for contact someone who does.


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