Income Protection Insurance

[meriad]

Does anyone here have one? I have one; or rather had up until a few hours ago when I decided to cancel the policy. But now I'm really not sure I'm doing the right thing - and I do have close on a month to change my mind and re-instate the policy.

Basically this policy will start paying out sufficient funds to cover my mortgage and outgoings after 12 weeks should I be unable to work for reasons such as illness or injury. It doesn't however pay out if I lose my job or resign and cannot find another one. The policy costs a fair whack every month; and I'll be honest it is money I could well do using elsewhere - but equally I've been paying it for a few years now; so am I being stupid by cancelling it?

I know when my SIL broke her leg she wasn't able to get to London for nearly 6 months - it was quite a bad break and she struggled being knocked about on public transport and had two set backs because of bad knocks. I'd like to think if that happened to me that I'd make a plan, but what if I couldn't? I have a mortage and pets to consider; it's not just me that I need to look after. I do have family but they won't be able to help and I have no savings.

So really unsure about what to do and just figured I'd brainstorm on here

[Diflower]

How long does it pay out for meriad? I know I've seen something about a lot of them only paying out for 12 months or so.

And what kind of employment contract do you have? A lot of companies would pay you in full for 6 months anyway, some for longer.
Also, the insurance companies are a bit tricksy when it comes to what's covered and what isn't.

[Osc]

Have you checked your mortgage protection policy to see if you have any cover with it? I think Mr. Osc thought about it when we first took over the post office, but we reckoned that I could run it if he was ill. We also had a policy that would have paid on a reducing scale if anything happened me and he needed to pay for childcare etc. but it was very inexpensive. I don't imagine you get any tax relief with this policy either, so I would think very carefully before reinstating it. Far better to put some of the money away in savings of some sort, I would have thought. Insurance companies always look for reasons not to pay out, too.

[meriad]

it would pay until either I go back to work or turn 60 whichever comes first...

I am trying to catch our finance guy who should know about what policies we have in place at work as they have changed a bit.

I do have a life insurance that was required for my mortgage as well as a critical illness insurance that pays the mortgage in full should I become ill due to serious illness such as heart attack, stroke, some cancers, limb amputation etc...

[Diflower]

Yes that's a good idea. I agree being on your own you want to be able to relax about it, but not pay through the nose.

[saundra]

i remember my son cancelling his
when he was out of work and he couldent get a penny
to many clauses that he wasent aware of at the time
its a bit of a mine frield i think

[Kaz]

Sorry Ria, I don't know much about it. Mick has never seen the need as BT are quite generous if anyone goes long-term ill

I hope you can sort this out, to reach the best solution for you ((((((((((x))))))))))