Income Protection Insurance - best provider

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gnf_ireland

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Unlike something like life insurance (you are either dead or not), income protection insurance can differ greatly between what providers offer. I have been getting some quotes on these recently, but looking for some advice on peoples experience with various providers.

I am looking for guaranteed cover, rather than reviewable cover.

I also want to ensure that I will be adequately covered if I do need to use it. The cover is not cheap (as everyone knows), so its better to have the right cover than worry about a 10 euro difference in the premium per month.

The two that are being promoted to me by various parties are
Aviva - who I understand are the cheapest currently and have decent cover
Friends First - who are the most mature in the market, have excellent claim history and 'are the best in the market'

Obvious this is from brokers, so looking for peoples experiences with the cover and what company did they choose (and why!!). Who would you pick today if you were buying the cover?
 
Researching this right now - Would love to hear of any thought and recommendations.

For example, elsewhere on here someone pointed out that Company A had more 'gotchas' in their small print and Company B was easier to work with when claiming.

Happier to take a recommendation from here than anywhere else - Thanks.
 
Aviva now owns Friends so their rates and processes etc may converge.

Income protection is heavily reinsured (90%+). So the reinsurer usually calls the shots in term of claims processing and handling etc.
 
I got Aviva policy last year, as recommended by @SBarrett on here. Having not spoken with nor dealt with Aviva, I am very happy with them so far :cool:
 
Aviva, Friends First and New Ireland are the only providers that I recommend.

Aviva and Friends First merged. Their prices and products are similar.

New Ireland are more expensive but have a guaranteed payout feature. Provide proof of earnings up front and even if your income falls when you claim, they will still pay out what you paid for. All other insurers do financial underwriting at claim stage. If earnings in 12 months before claim have fallen, they will pay out a lower amount.

Example. Earning €100,000, take out IP for 75% of earnings, €75,000.

Earnings fall to €80,000 and I go on claim. Life company will pay out 75% of lower amount it €60,000.



Steven
www.bluewaterfp.ie
 
@SBarrett
That's very interesting about guaranteed payout. I was wondering what would happen if say I took unpaid leave in year 1, but then had a claim on IP the following year.
 
Very interesting. I hadn’t heard of this approach before. What do they do if you have another phi policy with another co? (It’s probably rare but typically they cap the combined payout at x% of the salary).
 
Last edited:
RedOnion said:
@SBarrett
That's very interesting about guaranteed payout. I was wondering what would happen if say I took unpaid leave in year 1, but then had a claim on IP the following year.
Click to expand...

If you stop working, you have to notify them and go on a reduced type of cover that can be restored to the original cover when you return to work.

Zebedee said:
Very interesting. I hadn’t heard of this approach before. What do they do if you have another phi policy with another co? (It’s probably rare but typically they cap the combined payout at x% of the salary).
Click to expand...

The other company won't pay out in this situation as they don't have a guaranteed income provision. You are also asked on proposal forms if you have any other cover. If you do and don't disclose it, they will pay a reduced amount. If you do disclose it, they can reduce the guaranteed amount.


Steven
www.bluewaterfp.ie
 
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