Life Insurance and Income Protection

[Boothy16]

Originally Posted by MillieMoo23

I'm an Office Manager and my husband is a Service Manager (IT).

Unfortunately, we both only get statutory sick pay

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Thanks for that.

I have just looked on our quote system for same levels of cover you been quoted with Aviva.

Legal & General £88.61 per month
AIG £104.37 per month
Royal London £106.22 per month
LV £114.61 per month

LV & Royal London will also offer fracture cover on their plans as standard so if you break a bone you will get a pay out for this also.

Just to give you an idea of costings hope that helps

[waiting4disney]

Can you get any insurance through your work?

[MillieMoo23]

Unfortunately not, we both work for rather small companies

[act1980]

My late Fiance and I had life insurance with Aviva. We didn't have the income protection on top but from memory we only paid about £20 per month for the both of us which covered the mortgage if one of us died. Unfortunately he died when he was 31. Based on my experience of dealing with them under such circumstances I can highly recommend them as they were very professional and easy to deal with.

[DisneyBeliever]

I am not a financial advisor, however:

£120 a month is a hell of a lot of money. If you simply saved that into your savings every month that’s £1440 a year that you would have as an extra buffer in case something went wrong.

You say you are both in your 30s and healthy. Have you had much time off sick from your work? If not then why do you need this cover?

It would benefit you to work out how many times and how much you would need to claim in order for the policy to pay back I.e. you might need to be off sick for one month every year in order for it to pay back. Once you’ve done that calculation you can work out if it’s worth it to you.

[Colette-S]

I would also recommend Aviva. Don’t fall into that “fit and well, won’t need it trap” you never know what is round the corner believe me..

[Pumba75]

Originally Posted by DisneyBeliever

I am not a financial advisor, however:

£120 a month is a hell of a lot of money. If you simply saved that into your savings every month that’s £1440 a year that you would have as an extra buffer in case something went wrong.

You say you are both in your 30s and healthy. Have you had much time off sick from your work? If not then why do you need this cover?

It would benefit you to work out how many times and how much you would need to claim in order for the policy to pay back I.e. you might need to be off sick for one month every year in order for it to pay back. Once you’ve done that calculation you can work out if it’s worth it to you.

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I don't think you quite understand how the cover the OP is referring to works, or the benefit it is designed to provide. Simply putting the premiums into a savings account each month is nowhere near enough to self-insure to the same level of cover these benefits provide.

[DisneyBeliever]

Originally Posted by Pumba75

I don't think you quite understand how the cover the OP is referring to works, or the benefit it is designed to provide. Simply putting the premiums into a savings account each month is nowhere near enough to self-insure to the same level of cover these benefits provide.

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Sorry, I was mainly referring to the sickness cover which is the expensive bit. You’re right that it wouldn’t touch the life cover aspect but that is available a lot cheaper than £120 per month.

Clearly people will have different views but £120 a month is a lot of money to pay out for a benefit that you may not use (again, sickness cover).

[Pumba75]

Originally Posted by DisneyBeliever

Sorry, I was mainly referring to the sickness cover which is the expensive bit. You’re right that it wouldn’t touch the life cover aspect but that is available a lot cheaper than £120 per month.

Clearly people will have different views but £120 a month is a lot of money to pay out for a benefit that you may not use (again, sickness cover).

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The premiums the OP has quoted for the Income Protection are around £88pm, so saving that rather than paying for the cover won't even provide one month's benefit over the course of a year. Again, it's not a lot to pay for the benefit that will be provided if a claim is needed, and really not a lot to pay to mitigate that risk.