Income Protection Insurance - buy it while you can

dhaggertyatiprotect's picture

I saw Moneyfact's Liam Tarrys contribution to the BBC news item 'Protection Insurance in spotlight' and would like to pass on my support for presenting a strong message that I could not agree with more. Payment Protection Insurance has a poor reputation and deserves exposing under the strongest possible spotlight.

I would also like to think Liam's message, that there ARE good Income Protection policies out, there will not be lost on the audience, especially as I work for a company that sells income protection insurance. In fact, like the Post Office, we call it Lifestyle Protection Insurance to try to differentiate it further, as it tends to be 'tarred with the same brush' as Payment Protection Insurance and find it difficult to explain the difference so that people understand.

Sorry if this reads like an advert. its not supposed to, as my main point of submitting this is express my genuine concern that people with little saved and who really need income protection insurance, will be put off buying this when they most need it. I would hope that Moneyfacts would encourage people to buy while this insurance while they still can.

If the economy shrinks and job losses mount, the underwriters of this insurance will probably think twice about accepting people in occupations who can currently buy this cover very cheap, typically using the on line comparision sites.

Anyone in the building tade who bought this cover 18 months ago will be really glad they did, especially if they are now facing redundancy. They would find it just about impossible to buy now. And if, like the majority, they have little savings to fall back on, they risk losing virtually everything they have ever worked for: home, car and probably their marriage.

Your Comments

Thank you for your message of support dhaggerty, I am glad that the message came through loud and clear that Payment Protection Insurance (PPI) is not worth the paper it is written on. This is due, in the main, to the vast amount of significant exclusions buried deep within the small print.

I agree with your points, as unlike PPI, income protection is worth looking into. Although it won't cover your monthly salary in full, to get 70% if you are in an accident, become sick or unemployed (if you add this cover on - although it will be an additional premium) it provides a valuable safety net in times of need. Also unlike PPI, income protection can pay from day one until your retirement, with the amount you pay all depending on how long you want to defer claiming for.

So for a decent policy for someone aged 30, looking for around £1,000 a month, I think it would cost roughly £20 or month - but I'd urge everyone to shop around and speak to an independent financial adviser first to get the best quote for you.

Once again thanks for your blog, but as a final point I'd just make it clear that I work for Moneywise. I used to work for Moneyfacts once upon a time...

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