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Stocks n Shares ISA

Do people on here bother with income protection incase they get poorly and can't work for an extended period?
I know you're meant to have an emergency fund to cover such instances but working out what that should be is a bit daunting not knowing what the future brings.
No idea how much decent cover costs either.
 

junglist31 said:
Do people on here bother with income protection incase they get poorly and can't work for an extended period?
I know you're meant to have an emergency fund to cover such instances but working out what that should be is a bit daunting not knowing what the future brings.
No idea how much decent cover costs either.
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I used to years ago when I first took out my mortgage, but cancelled it later, it only actually started after 6 months of no pay, then only lasted for a year, plus as my mortgage had dropped from about 5% to about 1 they hadn't reduced my payments so sacked it off. This was about 15 year ago now like.
 
Barista said:
Edit: I should have also added that fund holding charges have been reduced from 0.45% to 0.35%, so if one mainly holds funds, then costs will be reduced.
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My understanding is that there is now a charge to buy or sell a fund, albeit a lower cost than stocks
 
junglist31 said:
Do people on here bother with income protection incase they get poorly and can't work for an extended period?
I know you're meant to have an emergency fund to cover such instances but working out what that should be is a bit daunting not knowing what the future brings.
No idea how much decent cover costs either.
Click to expand...

When I took out my mortgage my advisor told me not to bother. It's expensive and has lots of small print on what it doesn't cover. Better to build up a pot of 3-6 months essential expenses as a safety net.

However it is worth considering critical illness cover in case you can't work again. It's a lot cheaper than income protection and will pay off your mortgage.

Of course you need to factor in if you are a single or double income household and if you have kids at home.
 
Darlo1973 said:
When I took out my mortgage my advisor told me not to bother. It's expensive and has lots of small print on what it doesn't cover. Better to build up a pot of 3-6 months essential expenses as a safety net.

However it is worth considering critical illness cover in case you can't work again. It's a lot cheaper than income protection and will pay off your mortgage.

Of course you need to factor in if you are a single or double income household and if you have kids at home.
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A family member is having exactly that problem just now. Paid additional premiums for years and the policy isn't worth the paper it is written on.

Good of your mortgage advisor giving you that advice, they get more of their income from insurance sales.
 
Darlo1973 said:
When I took out my mortgage my advisor told me not to bother. It's expensive and has lots of small print on what it doesn't cover. Better to build up a pot of 3-6 months essential expenses as a safety net.

However it is worth considering critical illness cover in case you can't work again. It's a lot cheaper than income protection and will pay off your mortgage.

Of course you need to factor in if you are a single or double income household and if you have kids at home.
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I'm single with no kids so probably a waste of money.
 
Edinburgh Black Cat said:
A family member is having exactly that problem just now. Paid additional premiums for years and the policy isn't worth the paper it is written on.

Good of your mortgage advisor giving you that advice, they get more of their income from insurance sales.
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That's why it can be better to use a fixed fee advisor rather than one which works on commission. It may cost you more but you are likely to get better advice.

Income protection schemes are infamous for having qualification criteria which exclude most claimants. As long as you are confident of finding a new job in a couple of months, have some savings and will get a decent redundancy package then they are a waste of money.
 
Darlo1973 said:
That's why it can be better to use a fixed fee advisor rather than one which works on commission. It may cost you more but you are likely to get better advice.

Income protection schemes are infamous for having qualification criteria which exclude most claimants. As long as you are confident of finding a new job in a couple of months, have some savings and will get a decent redundancy package then they are a waste of money.
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Important to understand the product everyone is talking about here.

Income protection (when it’s mentioned to me) is basically a doctor signing you off as unfit to work & a policy paying out after a certain period. So if a doctor says you’re unfit to do your job, it pays out.

You seem to be talking about Mortgahe Protection Insurance. That’s including redundancy, which income protection doesn’t.

Someone who has a manual job, say a brickie could really benefit from income protection, but mortgage protection insurance is completely different
 
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Longy said:
Important to understand the product everyone is talking about here.

Income protection (when it’s mentioned to me) is basically a doctor signing you off as unfit to work & a policy paying out after a certain period. So if a doctor says you’re unfit to do your job, it pays out.

You seem to be talking about Mortgahe Protection Insurance. That’s including redundancy, which income protection doesn’t.

Someone who has a manual job, say a brickie could really benefit from income protection, but mortgage protection insurance is completely different
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Yes, fair point. There are lots of types of insurance available and it's easy to get them confused.

Also check with your employer benefits package as this may include insurance if you cannot work through bad health either long term or permanently but obviously won't cover for redundancy.
 
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Darlo1973 said:
Yes, fair point. There are lots of types of insurance available and it's easy to get them confused.

Also check with your employer benefits package as this may include insurance if you cannot work through bad health either long term or permanently but obviously won't cover for redundancy.
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Aye, big corporates usually have decent employee benefits. I previously had 6 months full pay & 6 months half.

I was off two days in about 11 years, but there was also a problem with the number of sick days taken in general funnily enough.
 
FishburnMackem said:
Taken a bit of a hammering today.
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It’s best not to look!
Longy said:
Important to understand the product everyone is talking about here.

Income protection (when it’s mentioned to me) is basically a doctor signing you off as unfit to work & a policy paying out after a certain period. So if a doctor says you’re unfit to do your job, it pays out.

You seem to be talking about Mortgahe Protection Insurance. That’s including redundancy, which income protection doesn’t.

Someone who has a manual job, say a brickie could really benefit from income protection, but mortgage protection insurance is completely different
Click to expand...
When we bought our house about 15 years ago we had 3 young kids and 1 FT wage.

I started an income protection policy that pays out after 6 months. My employer will pay 3 months full pay and 3 months half pay.

I’ll need to review whether it’s still worth it, it’s only about £25/month for about 50% of my pre-tax salary.
 
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Shambo said:
Silver down quite a bit. BOOOOOOOO
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It’s currently down about 27 percent in US dollars but hasn’t really dropped in Shanghai, absolutely screaming some sort of market manipulation.
You must be logged on to see media items
 
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