Do you have income protection insurance?

[Tusktusk]

im currently being given a hard sell on income protection insurance, on the basis that I am 50 and the highest earner in my family (£49k) with no savings.

But the insurance company are being awkward and the broker is pissing me off and I didn’t seek this advice in the first place, it sought me.

Do I need it?? Do most people have this?

I was told its pretty hard to get hold of since the pandemic. We've had it for decades and used it once when DH was made redundant, it was our lifeline so that we didn't go under.

I did until I went self employed
Now apparently not an option

We planned to have it until youngest dc is 18 (or until they had left uni, depending on choices!)

I have it, go to an independent broker though if you're getting a hard sell and uncomfortable, hate it when mortgage brokers do that.

(And yes we only did for the length of time we'd be actively parenting)

Suppose you got sick and couldn’t earn for a year, or two, or five. What sick pay would you get from your job? When would that run out?

Let’s say it’s enough to get you through for 6 months or a year. After that let’s say you apply for benefits - you should qualify for new style ESA which will give you a grand total of £90 a week. Could you survive on that?

Income Protection would give you a bit more income in that situation so you wouldn’t have to rely entirely on benefits. You can tailor the policy to be more affordable, by not paying out so much or delaying the start.

I took out a relatively modest policy and sadly had to claim. I eventually got ill health retirement, but until I did the Income Protection money was the biggest payment I had coming in each month.

No.
DH and I always both worked and were able to solely cover essentials for a period if one of us lost our jobs. I also had good sick pay terms.
It's an expensive insurance so I would only buy if I really thought I would need it. Otherwise I would rather channel the ££ to the mortgage making outgoings lower and more affordable for a sole earner or lower earnings!

Depends on your situation, id argue if you only had one earner in a household with dependents and limited assets - then it would be a prudent thing to do.

I'd be wary of a hard sell and do a personal finance audit of what you would actually need to support yourself if you were unable to work.

Depends what your circumstances are …I get 7 months full and 6 months half pay….wouldn’t be worth it for me as I’m 59 and could take my full pension any time

No. I get 6 months full pay and then automatic income protection through work for 75% of salary from 6 months to retirement.

Dh is self employed and the cost of protection was astronomical so we save the equivalent. But if he was out of work, we could survive on my salary - with a few key lifestyle adjustments but it would be doable. If this wasn't the case and his money was essential to cover basics we might have paid the ridiculous price he was quoted.

I actually have it through my work as a benefit which I pay for (much cheaper than if I did it personally).

I think if I didn't have it I would consider now though as I am a high earner and mid fifties so something I think about more than I did in my 20's.

I do. I’m a single parent looking after a 13yr old with no other back-up. It’s expensive but gives me peace of mind. As a PP said, you can fiddle
around with the terms to bring the cost down - mine has a delayed start of 13 weeks (I’ve got savings to get me through that but if necessary) and I’ve only got a % of my full income covered. But it’s better than nothing. I only get 1.5 months full sick pay and that’s it so I’d be a bit screwed without it.

This is what we did.
Single or no children, or if you have substantial savings - not necessary.
When DS bought a house he got the hard sell but resisted

I've got it linked to life insurance. My H can't get it due to his health issues. How much would it cost you? I think it's sensible to have but it depends if it's affordable?