Income protection insurance

[HouseBuyer10]

Hi there, I am the main earner in our house.
We don't have children, but hope to soon.
Would you recommend that I take income protection insurance? I was given a quote and it seems that the income and benefit will never change for the duration of the policy and the policy would cover me up to age 65. Would you recommend cover until 68, which is my pensionable age?
Thank you.

 

[LDFerguson]

Would you recommend that I take income protection insurance?

Depends on your personal circumstances. If you don't have Income Protection and you are off work due to illness or accident for a long priod of time, you'd be reliant on the State Illness Benefit (€203 per week) and your partner's income. If that's not enough, then you should consider Income Protection.

I was given a quote and it seems that the income and benefit will never change for the duration of the policy and the policy would cover me up to age 65.

There are lots of options available on this type of cover. Different waiting periods, different ceasing ages, escalation in the event of a claim, escalation of benefit annually. Looks like you received a quote for level benefits. If you want escalating benefits, you can have them.

Would you recommend cover until 68, which is my pensionable age?

Again, it depends on your own circumstances. A longer ceasing age costs more. If you're a member of a pension scheme, then you could have a ceasing age of 60 or 65 on the Income Protection and if you're ill at that age and unable to work, you could retire.

Liam D. Ferguson
www.ferga.com