Loss of income insurances

[WhyCantPeopleBeNice]

This post may come across a little nieve so please bare with me as I'm trying to learn/improve.

In the last 4 years my income has dropped by about 1/3rd. Adjusting to the loss of income and a few periods where I was not working means all savings have been depleted and I've gone into debt. I'm just at the point things are starting to level out, I hope by January next year I'll be in a much better position assuming nothing bad happens
And it's this 'nothing happens' that worries me.

I work with lots of European colleagues all of who have multiple insurances to cover loss of income through sickness or redundancy, as such there's quite a blaze response to fears of illness or redundancy and management are the same, it's very much a business thing to them because everyone has insurance to protect them.

It's got me thinking that having insurance would help if anything were to happen, but the cost of that means I'm paying less on my credit card and realistically it wouldn't be paid until July next year.

Has anyone got any experience with redundancy or sickness insurances. Things I should consider/ask?
Is £160 a month better spent on insurance v paying off my credit card that bit sooner?

Things to think about are how old you are, what's the state of your health and whether you have any dependents. If you're 25 and don't have children you could take the risk and use the money for debt repayment. I'm having to think about this ATM as I have a new job with a pay increase but am losing critical illness cover and income protection insurance. At late 40s with three dependants (an no partner income) it's too risk my for me not to have these and so I will arrange both privately

I've always had redundancy insurance as during my Marriage I was the higher earner. It costs £80 per month and is enough to cover the mortgage as I'd also get a decent redundancy payment - it would pay out for 12 months as well

Obviously I have sickness cover via work as well

I'm almost 40 and in good health.
My youngest is about to start uni so we've got the accomodation costs to cover, so whilst not a young dependant I do still need £600ish a month for their costs as well as our own bills, this is a concern as it's an added cost come September - most other things we could scrimp and use my husbands salary to cover bills but there has been a bit of resentment over the last 2 times in the last 4 years I was out of work which is another motivation to the insurance protection.

My employer pays the statutory amounts, so sickness is appalling as is redundancy - none of these insurances help for the first month but it's much easier saying to my husband he's only got to cover a month not an indefinite period.

Honestly hearing both of your posts I'm questioning why this is even a question and I should approach this like any other critical bill

Be careful the insurance covers what you need, how long you have to pay before it pays out, and how long it lasts after you start to claim. It might be better to just save a good chunk of your salary as a buffer. Not sure how good these things are.

I wouldn't take it out just because I had a child at uni - they could get a job that covered their accommodation or would be eligible for more loans if your financial situation took a turn

My policy I have had for about 15 years now - it was originally the Nationwide Lifestyle protector product when I bought the house - for about 10 years it was only £40 a month.

It can be difficult to get the cover these days though - lots of insurers stopped doing them during Covid for obvious reasons which is when it went up to £80 but hasn't risen in a couple of years now - for the peace of mind it gives me - particularly as a single parent it's invaluable. Obviously cost would depend on what job you do and how risky it is judged to be

Mine is a back to day 1 policy - so backdated to day 1 of redundancy. It would be pay out £1400 a month for 12 months. There was a 3 month lock out clause which meant I couldn't claim within 3 months of taking the policy out but that was years ago so doesn't apply to me. I wouldn't get it if I took voluntary redundancy.

I could increase it to a certain % of my take home pay but that would obviously cost more and I'm only really interested in covering critical bills like mortgage and/or any loans I have