Reply to: Income Protection

[wendigo100]

Hi People

I just had a review with my financial advisor at HSBC and he's advising me to take out income protection. As a side, I already have life and critical illness cover which covers my mortgage.

The premiums for £2k/month until I'm 60 (i.e. 28 years to go) are:
Deferred for 13 weeks premium is £56
Deferred for 26 weeks premium is £44
Deferred for 52 weeks premium is £38
Deferred for 2 years premium is £34.60


I just wanted to know if many of you protect your income??
If so, what is your deferred period?

It used to be called permanent health cover in my day. Income protection used to be something to do with unemployment.

The world keeps changing ... (mutter)

[Ansel]

Interesting.. thanks ASB.. I'll look into that

[ASB]

Yes he did say it should be written on "own occupation".

So you're saying that e.g have policy 1 with a deferred period of 13 weeks, and policy 2 with a deferred period of 2 years. Sounds like these policies could be quite costly.

No. I'm saying you have policy 1 with a deferred period of 13 weeks and a maximum payout period of 1.75 years. You then have policy 2 with a deferred period of 2 years and a payout period of until 60 or death or 65 or whatever you want.

This used to bring in cheaper overall costs. May not now of course but this used to be a fairly standard way of arranging the cover.

[Ansel]

Did he advise that:-

- It should be written on "own occupation" not "any occupation" otherwise it is probably pointless
- Usual best strategy is to take 2 policys. One with a long deferment period and one with a short payout period and short deferment. Often substantially cheaper.

Yes he did say it should be written on "own occupation".

So you're saying that e.g have policy 1 with a deferred period of 13 weeks, and policy 2 with a deferred period of 2 years. Sounds like these policies could be quite costly.

[ASB]

Hi People

I just had a review with my financial advisor at HSBC and he's advising me to take out income protection. As a side, I already have life and critical illness cover which covers my mortgage.

The premiums for £2k/month until I'm 60 (i.e. 28 years to go) are:
Deferred for 13 weeks premium is £56
Deferred for 26 weeks premium is £44
Deferred for 52 weeks premium is £38
Deferred for 2 years premium is £34.60


I just wanted to know if many of you protect your income??
If so, what is your deferred period?

Did he advise that:-

- It should be written on "own occupation" not "any occupation" otherwise it is probably pointless
- Usual best strategy is to take 2 policys. One with a long deferment period and one with a short payout period and short deferment. Often substantially cheaper.

Personally I've never bothered. I mean you'll get 90 quid a week DLA and Housing Benefit......

[Ansel]

[DodgyAgent]

The good news is the doctor has to stick his (or if you are lucky "her") fingers up your jacksie during the medical

[Ansel]

Yeah I'm very dubious about taking out this policy, as it does seem like something I'll never claim on...

but it does make me a bit anxious that if I do some damage to myself where I can't be a programmer any more (and make the dosh we do), where will I get income like that from 'till I'm 60.
Plus, my pension won't be being contributed to as much as I wouldn't be able to afford it ... so I'll be working well past my 60s ...booooooo!

[shoes]

An IFA has to advise you to do something you aren't already doing or you will think they haven't provided any advice. They are also brokers for financial products so will always be trying to sell you stuff. Also if he's so smart with money why is he still working for a living? Do your own research and come to your own conclusions. If he was truly independent he wouldn't recommend you spend any money on him!

[Fishface]

HSBC advisors are total c0cks.

Also it is almost impossible to claim mortgage or income protection - because you have to go through the DSS.

Hi People

I just had a review with my financial advisor at HSBC and he's advising me to take out income protection. As a side, I already have life and critical illness cover which covers my mortgage.

The premiums for £2k/month until I'm 60 (i.e. 28 years to go) are:
Deferred for 13 weeks premium is £56
Deferred for 26 weeks premium is £44
Deferred for 52 weeks premium is £38
Deferred for 2 years premium is £34.60


I just wanted to know if many of you protect your income??
If so, what is your deferred period?

[chubba]

I would check the cover on your critical illness as sometimes those pay out on blindness...

There has been lots in the news recently about payment protection being a bit of a sham as insurers wriggle as hard as they can to get out of paying these up so check the policys small print and only get an illness or severe injury that will allow you to claim

Personally I am sticking just with critical illness and life insurance as if it is not critical then it won't stop me working.

If I do go blind and am not covered then the Mrs can take directions and invoicing will continue as usual...

[thunderlizard]

That is true. But I've always reasoned that his slightly malicious financial advice is still better than my blind incompetence.

[el duder]

Hi People

I just had a review with my financial advisor at HSBC and he's advising me to take out income protection. As a side, I already have life and critical illness cover which covers my mortgage.

The premiums for £2k/month until I'm 60 (i.e. 28 years to go) are:
Deferred for 13 weeks premium is £56
Deferred for 26 weeks premium is £44
Deferred for 52 weeks premium is £38
Deferred for 2 years premium is £34.60


I just wanted to know if many of you protect your income??
If so, what is your deferred period?

your financial advisor wants to screw money out of u son.

TRUST NO ONE.

[Ardesco]

The same thing that other blind people do to make a living.

Just because to become disabled in one way doesn't mean that your life is over and you will never be able to work again.

[shaunbhoy]

Ardesco, what would you do if you (god forbid) lost your sight, what would you do for income?

There is a lot to be said for converting to Islam at that point and eking out an existence as a mad mullah preaching hatred.
Mind you, you need a silly beard, and the more false limbs you have the better too......so they say!