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Hey guys, for the last 8 years i have worked in the Oil and Gas sector as a self employed contractor. I have a Limited company set up with myself as the Director. With the Industry the way it is and how my trade operates i doubt my employment status will change from this which suits me fine.
2 things have happened recently that have made me realise that not having Income protection if i have a serious illness is a bad move. Without going into detail 2 friends who are the same age as me (40 Years old) have very serious illnesses that mean for the forseeable future they cannot work. Luckily they are in a good position financially but i know i wouldn't be if i found myself in any of their positions.
So...... who do you recommend.
I looked into this a few years back. The premiums were prohibitively expensive.
Then I got Angina...
The benefits were only payable for a year, so at best it would have delayed selling the house by a year.
friends life.
When I looked into this years ago, I thought it was better to just save up a buffer. Too many policies don't pay out when you need them, and the premiums were too expensive.
Yes, as above,I queried an Insurer at a Trade Show, £50ish a month premium for an income of £1000 a month, but they wouldn't pay up for the first 4 weeks, and only one period of over a month paid out in any year.
I didnt bother.
You can get day 1 cover from some of the friendly societies (exeter or cirencester) but price tapers the longer the period of disability before a claim is made. So 4 weeks is lowest offered by most traditional insurers, going up to 52 weeks.
Be aware that claim amounts are half to sixty percent of earnings because it's not taxed. Important that whatever cover amount you take out can be limited if the earnings in the 12 months before a claim drop. Payment will only be the 50-60% of that amount.
Friends Life no longer exist and they're part of Aviva. LV= gets decent product ratings. Others too, but all much of a muchness.
Income protection insurance is not worth the premium, IMO, but Critical Illness cover might be useful. Try Aviva or Zurich
We looked too a few years ago, basically you're insuring cash and worked out expensive compared to leaving money in the business.
they can work out very cost effective as a proper phi plan will pay until retirement. Imagine you took one out at age 35 and were in an accident the next day. There's a reason they're expensive, but hey if you've got the money do it.