Income Protection costs

[Acorn22]

Hi,

We are reviewing all our outgoings at the moment. Our income protection price is €144.34 per month @ 60% this is €86.60 nett cost. We purchased via a broker and we were told that only one provider were showing benefit increasing in payment (Aviva) and we felt indexation was important. Start date age 40 end date is age 70 years old.

Is this reasonable for an office worker? The sum insured is somewhere between 52,500 - 54,000 nett. Sorry I cannot remember the exact figure. We are looking for same type product for less.

Thanks

 

[Dave Vanian]

We purchased via a broker and we were told that only one provider were showing benefit increasing in payment (Aviva)

That's not correct. All Income Protection providers offer indexation.

That said, Aviva do have a good track record of paying Income Protection claims.

Why is the end age 70? Do you think that you will be working until age 70? If not, an earlier end date will be cheaper.

What age are you now? Do you smoke?

 

[Acorn22]

That's not correct. All Income Protection providers offer indexation.

That said, Aviva do have a good track record of paying Income Protection claims.

Why is the end age 70? Do you think that you will be working until age 70? If not, an earlier end date will be cheaper.

What age are you now? Do you smoke?

The end age is 70 as I feel that is the way things are going. I can remember reading somewhere that some say public sector jobs retirement has been hiked up to 67. In another 20/30 years i think with people living longer it's only inevitable that this may spread to all job sectors. I'm not a smoker & early 40s now.

 

[Dave Vanian]

The end age is 70 as I feel that is the way things are going. I can remember reading somewhere that some say public sector jobs retirement has been hiked up to 67. In another 20/30 years i think with people living longer it's only inevitable that this may spread to all job sectors. I'm not a smoker & early 40s now.

Assuming that you're 42, a non-smoker, office job, €52,500 per year cover with indexation, to age 70, starting after 26 weeks of disability would cost over €170 per month gross now under a new policy. So on a like-for-like basis, what you have is a good premium.