Insurance...do I need it?!

[Swiss Tony]

Best CIC on the market as it stands today is a toss up between BUPA and Friends Provident. BUPA is just ahead due to their policy of Best Doctors. I have guys who do shed loads of diligence for me so I know what I’m on about!

No I don’t work for either of them!

[chef]

BUPA dont cover contractors though do they?

"If you are in paid work earning up to £50,000 a year, you can receive the benefits of your cover or 50 percent of your "pre-incapacity earnings", whichever is the lower"
from Bupa.co.uk > Lifestyle & Income Protection > How much will i get?

[Swiss Tony]

The majority of my clients are contractors and all of them that have wanted CIC are covered through BUPA.

As your talking about Income Protection Friends Provident are ahead of the game at present, in fact it’s a toss up between Friends Provident and AXA with income Protection, though I would say Friends Prov are head and shoulders above AXA.

[Bagpuss]

I thought CIC was a bit of a con, i.e so many caveats they almost never pay out?

[Swiss Tony]

I see your confusion Chef, though your income would be rather low (assuming that you are set up as a limited company) you would still be getting dividends etc. I choose to use your annual figure, based on estimates if needed, of everything rather than your ‘basic’.

Though It may be the case that the online or phone staff are unable to do it, so you may need to do it via an IFA. Similar situation if you wanted anything above a stakeholder pension; you may have to be advised as to which insurance suits your needs best, hence assessed on your situation, rather than direct offer.

I agree with you Bagpuss, the majority of CIC contracts are not worth the paper they are written on. Its why we spend allot of time making sure the ones we do recommend are actually going to pay out rather than “well you still have one leg sorry”. The main reason for the better ones not paying out is that the applicant has ‘lied’ or embellished the truth on application.

Law states that it must be 100% true on application, if it is found out that the client did lie about a condition ie cancer and they said they were not a smoker it would be void. Having said that friends Provident do still pay out an amount if the client has not told the truth.

They are making it more harder to claim (they changed the goal posts a few months back) as one in three people will get a Critical Illness of some description. Way back when they first started this cover they did not expect such a high rate of claims.

[Bagpuss]

"the ones we recommend"

Insurance salesman?

[Swiss Tony]

lol NO

Financial Consultant / IFA

It is usually part of a clients Financial Security, all good and well going forward but you need to be protected if things go tits up.

[Bagpuss]

lol NO

Financial Consultant / IFA

It is usually part of a clients Financial Security, all good and well going forward but you need to be protected if things go tits up.

A proper IFA, or one of the "was working for Everest before I got into this lark" types?

[Swiss Tony]

A proper IFA, or one of the "was working for Everest before I got into this lark" types?

Less of it!

Nope went direct into the IFA scenario from Uni. Started as a trainee whilst I did all the relevant exams (and a bunch of irrelevant ones as well!), made cups of tea the usual.

Have been acting as an Independent Advisor with all bells and whistles for almost two years now (4 years spent doing the ground work and working up ye old cooperate ladder)

[gadgetman]

I've managed to avoid forking out so far but for my latest contract (starting Monday) the client has insisted on £1m PI insurance and wants to see the certificate.

After a bit of searching around I got an all-in-one £2M Public Liability, £1M Professional Indemnity, £10M Employers Liability. Cost is £390 via one of the quotes at http://www.betterbusiness.co.uk/ as recommened in a thread on this site.