How to get income protection and choose broker?

Hi,

I was wondering what's the best way to go about getting income protection.

42, female, non smoker, PAYE worker and will retire at 65 or so. Probably 26 week deferral period but I'm public sector so have the 3 month sick pay/3 month half pay to take into account. Maybe 26 weeks is too long and I should consider 13 even though it will increase the cost?

I found an option on the Irish Brokers Association website to see who their brokers are but have no idea how to know who's good or recommended. Or if they're all the same.

I did phone one broker at lunchtime yesterday and the conversation took about 45 mins. I know it's important but honestly haven't the time to go through 3/4 calls like that, I'd need to take a half day off work

Any advice would be welcome please.

My name.

If you ask any nurse/teacher I think they will also have the 6 month cover;
A lot of teachers/nurses have income protection policies in place via their Additional Voluntary Contribution connections with their large brokerage.
If you know any nurse teacher ask them or your Union rep.
Be very very careful that you clearly understand the exclusions on these policies.
Do not assume Heart Attack is what you assume Heart Attack to be etc.

Since you are 42 and importantly, healthy would you not go for Additional Voluntary Contributions on your Pension?
I understand that if necessary, on health grounds you can access pension funds from 50.
I understand AVc,s get tax relief, I am not sure if Income Protection gets Tax Relief.
There are some posters eg S Barrett on AAM that have the knowledge and give good clear pointers,maybe send him a private message.

You have to factor in the following:

Full pay up to 3 months
Half pay for the following 3 months
Rehabilitation rate for the following 18 months

The longest deferred period on a policy is 12 months, so there will be a period of over insurance but there is nothing that can be done about it.

Then there the policy itself, they all have pros and cons, so the cheapest is not necessarily the best.

Let me know if you want more details.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Thanks for your replies, much appreciated.

I hadn't thought of the rehabilitation rate but I thought you had to applied to your HR dept for it and it would be given at their discretion? Also it would be much lower than the amount I'd be claiming under the policy so I was assuming I'd go straight to the policy after 6 months pay/half pay and another 26 weeks deferred period.

I was told Royal London is good as it price matches the others with better benefits. I did look into AVC's, thank you, but decided against those.

Does your union offer an income protection deal?

I'm not in one. I did consider joining because they have a scheme with Cornmarket (among other reasons!) but have seen quite a bit of negativity online about Cornmarket /Irish life in terms of claim processing. Hopefully I don't ever need to claim but wanted to take everything into account.

My Name said:

Thanks for your replies, much appreciated.

I hadn't thought of the rehabilitation rate but I thought you had to applied to your HR dept for it and it would be given at their discretion? Also it would be much lower than the amount I'd be claiming under the policy so I was assuming I'd go straight to the policy after 6 months pay/half pay and another 26 weeks deferred period.

I was told Royal London is good as it price matches the others with better benefits. I did look into AVC's, thank you, but decided against those.

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From my understanding, the rehab rate is payable if you are unable to return after 6 months but it is deemed that you will be able to return in the future and not have to go on ill health early retirement. I think the one at HR's discretion is the critical illness where they will continue the sick pay if you have a critical illness, which they don't define.

I reviewed the Royal London policy recently. It's alright. If you like any extreme sports, it won't cover you. It also won't cover you if your business stops trading while you are on sick leave which is strange as most one man businesses will close if unable to work (I know that doesn't apply to you).

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

SBarrett said:

From my understanding, the rehab rate is payable if you are unable to return after 6 months but it is deemed that you will be able to return in the future and not have to go on ill health early retirement. I think the one at HR's discretion is the critical illness where they will continue the sick pay if you have a critical illness, which they don't define.

I reviewed the Royal London policy recently. It's alright. If you like any extreme sports, it won't cover you. It also won't cover you if your business stops trading while you are on sick leave which is strange as most one man businesses will close if unable to work (I know that doesn't apply to you).

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

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My name.

I had severe issues on Cornmarket claim , so stay careful.
Steven seems to always advise well and knows the products.

Thanks again Steven and Gerry. I know nothing about these and wasn't sure where to ask so you have all been very helpful. I'm not planning to take up extreme sports any time soon so I think I'd be safe enough with that exclusion (what's the bet I now go and win a sky dive )