Is income protection insurance essential?

[Steven Barrett]

out of interest are there fees included in monthly fee if so how much? How can you waiver these?

Protection policies are usually paid for by commission which is built into the premium. You can get a reduced premium by paying a fee up front to put the policy in place. In my experience, people don't like doing this.


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

 

[Homepayer]

Protection policies are usually paid for by commission which is built into the premium. You can get a reduced premium by paying a fee up front to put the policy in place. In my experience, people don't like doing this.


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

Hi Stephen
Would you recommend someone get professional representation when submitting an Income Protection claim?
Would the insurance company usually act in good faith or would they make it unfairly difficult, in your experience?

Thanks

 

[Steven Barrett]

Why don't you use the agent that you used to buy the policy? You will find it difficult to get a broker to work with you on a claim if you are not already a client. The compliance paperwork required is too much hassle.

Income protection covers such a broad spectrum of accidents, illnesses and injuries, it is impossible to know how your claim will be treated. If it is an illness such as cancer, stroke etc, it will be a more clear cut claim than someone saying they can't do their office job with a broken arm or leg. Not all insurers are the same.

 

[Dave Vanian]

As a broker, we've had experience in the past with Irish Life and Aviva for paying Income Protection claims. Irish Life were difficult to deal with and tried (unsuccessfully) to make out that the claimants weren't genuinely sick. Aviva were far more helpful and paid the claims without quibble. But that's only our experience and might just have been because of the specific details of the claims involved.

Some claims are black and white. If you're a surgeon and break your arm badly, there's no question about your inability to do your job. However, if you work in an office job and are suffering with depression or other mental illness, or perhaps chronic back pain, it's also keeping you from being able to do your job, but from an insurer's perspective, it requires more evidence that you're genuinely unable to work and not faking it.

I'd second the advice of @Steven Barrett above. You should ask your own broker to help you to submit your claim.

 

[Steven Barrett]

Irish Life were difficult to deal with and tried (unsuccessfully) to make out that the claimants weren't genuinely sick. Aviva were far more helpful and paid the claims without quibble.

That is the general experience in the market. Irish Life are much harder to process a claim with than the others.

 

[masterboy123]

As a broker, we've had experience in the past with Irish Life and Aviva for paying Income Protection claims. Irish Life were difficult to deal with and tried (unsuccessfully) to make out that the claimants weren't genuinely sick. Aviva were far more helpful and paid the claims without quibble. But that's only our experience and might just have been because of the specific details of the claims involved.

Some claims are black and white. If you're a surgeon and break your arm badly, there's no question about your inability to do your job. However, if you work in an office job and are suffering with depression or other mental illness, or perhaps chronic back pain, it's also keeping you from being able to do your job, but from an insurer's perspective, it requires more evidence that you're genuinely unable to work and not faking it.

I'd second the advice of @Steven Barrett above. You should ask your own broker to help you to submit your claim.

I am considering Royal London for income protection. Any dealings with them?
Thanks

 

[daheff]

I am considering Royal London for income protection. Any dealings with them?
Thanks

I ended up getting a policy through a broker with them. They were one of the cheaper offerings. Not had to claim anything so can't comment on good/bad they are for claims (which is ultimately what would determine how good they are i suppose).

 

[Sarah Ryan]

That is the general experience in the market. Irish Life are much harder to process a claim with than the others.

This is probably a hard question to answer but I will put it out there
Couple early 40's, no kids together, husband has 3 teenagers from previous marriage they do not live with us
Both employed full time
Private sector employee with pension deficit
Semi state employee with no pension deficit
Would it be better for us to tackle pension deficit instead of take out insurance like this? My husband wants to get some form of income protection as youngest child is 14 and he needs to maintain them
We both have private health insurance
Not a lot of savings due to buying a house 3 years ago and we threw the sink at it to get it

I have your info saved to look into this further do don't worry if this needs a more time and attention to answer.

 

[Brendan Burgess]

@Sarah Ryan

There are three separate issues to deal with and he cannot afford all three.

1) He has a mortgage to pay
2) He could get hit with a serious illness which causes him to lose his income
3) He retires

Paying the mortgage is a priority. He will always benefit from paying down the mortgage.

He could get sick and his younger son might suffer. But presumably his ex-wife would look after the son. Things might be a bit tight but they will survive.

He is very likely to live for 20 years or so after retirement.

That is why I would prioritise getting the mortgage down and having a decent pension. Both are very likely outcomes.

Brendan

 

[Modgal]

Hi, I am doing some financial housekeeping! I am a special needs assistant in a school, so employed by Dept Education, which is better for me income protection or critical illness protection, and which company. I am 54. Also, I pay into cornmarket Avcs, is there better avcs out for my meagre salary. Because my salary is low I need to get this all right. Thank sor any advice, it is much appreciated.