# Income Protection



## BPM (28 Feb 2006)

Currently interested in starting an income protection plan in the not too distant future through Frends First or Irish Life,but cannot decide whom to go with.

All advice above would be appreciated


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## ClubMan (28 Feb 2006)

Doesn't it really come down to the terms & conditions of the policy document and the premium charged rather than just one brand/company over another?


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## david9 (1 Mar 2006)

Great thinking BPM.. But my understanding is that you shoudnt stick to any particular company if you are not quite aware of their policies. Shop around the companies and that will help you to save some* euro.  *


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## X-Man (1 Mar 2006)

heard on the radio last week that co's pay out only after 16weeks of time out.is this true??


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## demoivre (1 Mar 2006)

X-Man said:
			
		

> heard on the radio last week that co's pay out only after 16weeks of time out.is this true??



The deferred period will typically be either 13, 26 or 52 weeks. Other things being equal the shorter the deferred period ( ie the sooner you start drawing down the replacement income) the greater will be the premium you pay.


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## X-Man (1 Mar 2006)

demoivre said:
			
		

> The deferred period will typically be either 13, 26 or 52 weeks. Other things being equal the shorter the deferred period ( ie the sooner you start drawing down the replacement income) the greater will be the premium you pay.


 
so after this period of "WAITING" do you get back-pay or does the first payment start after x period with x amount.

personally i think IP is a catch and a loss of money


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## ClubMan (1 Mar 2006)

X-Man said:
			
		

> personally i think IP is a catch and a loss of money


 *Most *insurance is a "waste of money" in that you pay for a service that you often don't need to benefit from. That's what insurance is all about - risk assessment, covering the worst case scenario, paying for peace of mind etc. It's not about paying over a sum of money in premiums on the assumption that you *will *eventually get it back in payouts. People considering income protection (or any insurance for that matter) need to first assess their risk profile and then make a call on whether or not they actually need it. In the case if _IP _individuals should take into account their welfare benefits (_Jobseekers' Allowance _etc.), other benefits (statutory and non-statutory redundancy payments), savings/investments etc. and consider whether or not they really need insurance to cover loss of income. In some cases _PHI (Permanent Health Insurance) _rather than _IP _might be more appropriate. In some cases no insurance might be the most appropriate choice - e.g. especially for single people with no dependents and their own house. As ever read the terms & conditions of the specific policy document in detail and assess different policies on these criteria and not just price.


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## RS2K (1 Mar 2006)

PHI, IP, and salary continuance are buzz words for the same cover afaik.

The market is very narrow too. About 4 competitive on group risk, and only 2 offering individual policies.


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## BPM (1 Mar 2006)

Thanks for all advice.

Why I am so interested in I.P is  from the experience a work colleague had to go through when he broke a leg  late last year and was off work for four months.

He got  paid for 20 sick days leave (agreed by company) and then onto social welfare as per norm.

He has lost out on  his Qtrly bonus,had to take out a loan for monthly mortgage repayments etc and now last week was informed his BIK for 05 re company car maybe an issue as car was lying idle for the four months


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## RS2K (1 Mar 2006)

ILAC do not offer guaranteed premiums. They are reviewable and may increase. 
F.F.  have been doing this kind of business well and profitably for many years in my experience, and have the best and longest claims paying record.


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## ajapale (20 Oct 2006)

RS2K said:


> PHI, IP, and salary continuance are buzz words for the same cover afaik.



Hi RS2K,
Is there any even subtle difference between PHI, IP and salary continuance?
aj


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## RS2K (20 Oct 2006)

3 different names for exactly the same type of cover.

There will be subtle differences between competing insurers contacts however.


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