phi/income protection

No reply to my previous post on phi/income protection. Currently have income protection with Friends First, protecting my income to E530 pr week. However, now have gone part-time, so my income is not E45k per year but around E30k. Now thinking of giving up work (but will do a few agency shifts a month) for a few years to study - have other income from rental properties and maintenance for children - my account says I should keep paying the phi/income protection until I return to work, however, the monthly peremium is E189.00, and it is a lot to pay when one's salary is reduced. I'm 42 and a nurse. Any advice greatly appreciated - as I almost feel, from my accountant, that I should keep working to pay this insurance. Any advice gratly appreciated.

Hes probably coming from the point of view that if you cancel the policy now and restart it in a few years that the monthly premium will be greater when you restart it as PHI rates are age related. There is also the risk that something may happen to you health wise while you dont have cover that could prevent you getting cover again or mean that you could be loaded.

If you feel you can afford it then keeping it is a good idea, alternatively you could ask your broker if you could get a quote for a lower amount say 3/4 of your current income less social welfare. This would most likely reduce your current outgoing monthly bill and keep cover in place sufficent to keep you covered god forbid anything did happen to you.

Hi! Steviec, thanks for your reply. I think I am overinsured anyway, especially as I am now working part-time, want to give up work for a while, or at least intend to just job-share (19.5 hrs per week) for next few years. So if my currnt salary is E2,400 per month, then I should only be insured for E450 per week (3/4 of salary) less social welfare E165 per week, which would bring the total of insurance needed down to E285 per week (instead of E550 per week now), is my caclulation correct? Thanks again.

2400 X 12 = 28800
28800/52 = 553.84

Less social welfare

You can be insured for a little bit more than your calc Elaine if you wish.

Regards

Stephen