Salary protection

hello,
I have been offered salary protection cover but but with the exclusion of any back related problems.. (I was out of work 6 years ago for three weeks when I hurt my back but have not suffered since )
I declared this when asked about my medical history.
I'm 34 and this will cost me 35-40 euro a month.. I'm a bit miffed to have this exclusion applied to the cover..
Do people think it's still worth taking out this cover?
Any advice appreciated

When I took out similar cover I was thinking of something more catastrophic along the lines of stroke, disablement etc.
What is the exclusion period on your policy? 12 weeks? 24 weeks? If you work in the private sector chances are your employer will pay full salary only for first 12 or 24 weeks.
Do you see yourself being incapacitated with back pain for longer than this period?
Do you have a desk job or a job in which you are more exposed to back pain risk?

angelcm,

Back issues are always a problem, it is a hard one to prove and insurance companies are very very slow to pay on back issues. too many chancers claim bad backs so companies are cautious.

Have a very good look @ terms and conditions eg it is now very hard to claim for heart attack , since a lot of what we laymen know as heart attacks are (arythmia) or some other obscure things.
Skin Cancer is normally not covered because ,thankfully, most are cured.
Disablement seems to mean to insurer, losing a leg , yet nowadays surgeons can save most legs , yet in laymans terms you are disabled.

Might be a good time to review all insurances with a competent Broker.

Gerry, I think you are getting income protection mixed up with critical/specified illness. That pays out a lump sum if you get one of the listed illnesses and then the policy is finished. Income protection pays out a percentage of your salary if you are unable to work due to accident, illness or injury and will continue to pay out until you return to work or reach retirement age.

Angelmcm

Income protection is very strictly underwritten and they will not cover existing illnesses or injuries. A 31 year claim for initial cover of €20,000 that indexes at 3% per annum will cost the insurer €1m in payouts. They just won't take that risk when they already know you have a history of a bad back. You were correct in disclosing it. Not telling them is a non-disclosure of a material fact, something that you signed you didn't do. If you subsequently went out on a claim for a bad back, they would find out and not pay out.

Claims wise, back is a major pay out. I got the 2014 claims stats from New Ireland last week and back injury accounted for 25% of all claims. Psychiatric conditions was 26% and cancer 15%. The average age of a claimant in 2014 was just 43!

Gerry is right when he says look at the terms and conditions. Not all policies are the same, they differ wildly and some are not suitable at all for the self employed and should be avoided under all circumstances.


Steven
www.bluewaterfp.ie

Thanks Steven.

From experience,
Customers (not just mise !) get flummoxed over what cover they actually have ,be it critical illness/payment protection etc. Too often they weren,t covered for what they believed they were covered for eg could easily forget about an old back episode.
Customers really need a competent Broker (not their friendly tied agent/banker) to advise them.

Your note on cost to company on a potential claim highlights the need to get good advice before buying.

It's very easy to get mixed up Gerry. Because it is something I deal in everyday, I can be rabbiting on, using jargon, forgetting that the client hasn't heard any of these words before.

It is crucial that the terms and conditions are read. A few years ago I took the effort of reading the terms & conditions of all the income protection providers. It is something I had ignored for years, afterall, who reads the t&c on anything?! it has really help me guide clients into what is the most approropiate product for them.

For example, Royal London's policy will stop paying out if you are self employed and your company goes bust while out on a claim.
if you are self employed and make a claim, Aviva will look at the average earnings in the previous 3 years. New Ireland and Friends First will look at earnings in the previous 12 months.


Steven
www.bluewaterfp.ie