Help please - income protection insurance

[nicky2512]

I was wondering if I could have some advice please. We (myself and dh) are currently reviewing life and mortgage insurance and the broker suggested we took out income protection insurance for a proportion of dh’s income which we don’t currently have.
It’s not too expensive but given the current financial situation, I want to be sure we actually need it. Dh has good life and critical illness cover and would get full pay from work for six months if ill.
The insurance would give us about half his pay for 2 years but I don’t know if I’m missing something. If he were ill after the six months pay from work is there only statutory sick pay or would this be made up by any other benefit? If he would only get a hundred pounds a week or so then it would be worth paying the insurance but I thankfully have never been in this position and don’t know if we would be paying insurance for something that would actually do us out of other benefits (should the situation ever arise)

Dh has been off work sick for a week in the last 30 years but you never know.

Thank you so much.

If off work for more than 6 months, may not remain employed. May be eligible for a state benefit. Income Protection insurance can have a deferred period so it starts once the work cover ends. The long deferred period keeps the cost low.

I would look at income protection that lasts longer than 2 years. Some conditions could be very long term, recurring things and things which result in long term impairment. Talk to the broker about what sort of things get claimed on income protection policies and what option there is for coverage until retirement age, not just 2 years.

Thanks @nannynick I will ask about a longer period of cover.
The cover is for 12 - 1500 pounds per month and I suppose what I’m really thinking is if that is much more than any sickness benefit could be.

Look at income protection to take you to 65/70 depending on your mortgage term. It’s more expensive but worth taking.

Yes government statutory sick pay is rubbish. 109 a week. It would barely cover my energy bill.

https://www.gov.uk/statutory-sick-pay

If you read each page it then goes onto ESA so you can work out what you may get.

I have been off work for over a year with cancer. My sick pay lasted 3 months full pay, 3 months half pay. I then applied for ESA and PIP. The ESA is about £75 pounds a week- but it has never actually arrived. The application was started 6 months ago, and is still ongoing. I don't think it will be back dated, either.

I have lived off of family since my sick pay ran out. The DWP's solution to my total lack of income whenever I speak to them is use a food bank. And I have to speak to them often bout my application, and it takes over an hour to get through, every time.

Thankfully I am a teacher in a shortage subject, so I know my job is being kept open for me, but in other circumstances it wouldn't have been.

Thanks. Think it’s definitely worth taking then. Just need to look into a longer term. z@orangeleavesinautumn that is a rubbish situation. I really hope things improve for you soon.

When I became ill I couldn't claim on critical illness cover (because I didn't have an illness on the list) but I became permanently unable to work. The income protection got me through till the government finally sorted out my benefits (about 6 months pre covid). If I hadn't have had it I would have probably lost my home. Its a very individual thing but for me it was worth every penny.

Thanks @Chickenpastabowl
I’m sorry about your ill health but glad the insurance worked for you. I’m def going to go for it. Would rather not be out the extra money at the minute but don’t want to regret it later.