Check the small print
If you have more than one IP insurance, then it's going to be means-tested, so a permie that gets paid for time off won't be able to claim on a separate policy-pretty obvious, as the 1st thing insurances do is try to avoid paying up!
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Reply to: Income Protection Insurance
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Previously on "Income Protection Insurance"
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Originally posted by KevinS View PostI have Income Protection from Scot Equitable - 8 week lag (I have enough put away to cover the 8 weeks), pays me enough to cover the bills..
The idea of the plan is that if I'm incapacitated I will have a payout to near retirement age.
I've had three friends who have had sporting accidents in the last 3 years who couldn't work for 4 to 9 months. Luckily for them they are all permies who found they had just another sick pay to cover them.......
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Income Protection
Originally posted by GreenerGrass View PostI'm using Dentists and General, the good bits, if you catch the flu and it lasts a week or more then the policy has paid for itself. The downside, it only applies while you are in a contract (so 6 months max for most people - if you're going to break a limb do it early in your contract ). Also it doesn't cover any previous conditions.
It seems worthwhile for your first 2 or 3 years contracting while you are building up your emergency/bench fund.
http://www.dengen.co.uk/
I have had it now for over 10 yrs, but when I recently wanted to extend the cover, it came up as 3x more for a 1.5x increase, so obviously aware of their niche market.
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I have Income Protection from Scot Equitable - 8 week lag (I have enough put away to cover the 8 weeks), pays me enough to cover the bills..
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Originally posted by Cheshire Cat View PostIf you decide to do this, check if the insurance pays out immediately or whether there is a "lag", which I understand is common.
If your motivation for paying for this insurance is to avoid cash-flow problems of being out of work, then no point in paying for a policy that pays out only x days after you make a claim, or x days after you've been unemployed, by then all your bills might have been missed and you'll be in the sh!t.
Quite clearly, someone with a one day policy will make make many more claims that someone with a 4, 8 or 13 week policy. Consequently, a one day policy will be much much more expensive, almost to the point of it being unaffordable.
IMHO, anyone who doesn't have the means to fund their necessary outgoings for at least 4 weeks (and preferably 13) does not have enough flexibility to even consider becoming a contractor.
HTH
tim
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Originally posted by GreenerGrass View PostI'm using Dentists and General, the good bits, if you catch the flu and it lasts a week or more then the policy has paid for itself. The downside, it only applies while you are in a contract (so 6 months max for most people - if you're going to break a limb do it early in your contract ). Also it doesn't cover any previous conditions.
It seems worthwhile for your first 2 or 3 years contracting while you are building up your emergency/bench fund.
http://www.dengen.co.uk/
Good scheme - however for the ex-pats Nota Bena
AM I COVERED WHEN WORKING ABROAD?
Sickness benefit is not normally paid whilst members are abroad. If you join whilst employed in the UK and subsequently work within the European Union, you will be eligible for benefit.
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Originally posted by TheFaQQer View PostIs that then declared as a BIK on your P11D?
There will of course be a tax liability if the policy does pay out.
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Originally posted by DiscoStu View PostI decided that as someone fairly new contracting without a huge pot of cash to fall back on, it would probably be a good idea to get some kind of income protection insurance in case anything bad happens (I'm thinking in terms of health problems as opposed to being stuck on the bench for a few of months).
Does anyone have this? Who did you get it from? Any recommendations?
TIA
It seems worthwhile for your first 2 or 3 years contracting while you are building up your emergency/bench fund.
http://www.dengen.co.uk/
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Originally posted by 51st State View PostI got mine through my FA. The company is called UNUM (not a name I'd heard before - obviously pay my FA good commission!) and it worked out at about £2 for every £100 insured income, which the company pays for me.
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If you decide to do this, check if the insurance pays out immediately or whether there is a "lag", which I understand is common.
If your motivation for paying for this insurance is to avoid cash-flow problems of being out of work, then no point in paying for a policy that pays out only x days after you make a claim, or x days after you've been unemployed, by then all your bills might have been missed and you'll be in the sh!t.
Leave a comment:
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Originally posted by DiscoStu View PostI decided that as someone fairly new contracting without a huge pot of cash to fall back on, it would probably be a good idea to get some kind of income protection insurance in case anything bad happens (I'm thinking in terms of health problems as opposed to being stuck on the bench for a few of months).
Does anyone have this? Who did you get it from? Any recommendations?
TIA
Leave a comment:
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Income Protection Insurance
I decided that as someone fairly new contracting without a huge pot of cash to fall back on, it would probably be a good idea to get some kind of income protection insurance in case anything bad happens (I'm thinking in terms of health problems as opposed to being stuck on the bench for a few of months).
Does anyone have this? Who did you get it from? Any recommendations?
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