Income Protection Insurance

D

dillons

Registered User
Messages
119
Hi,

I am looking at taking out Income Protection with Friends First.
The quote I have gotten is for 'Level' Benefit/Premium described as 'The Premium and level of benefit are guaranteed not to change for the duration of the policy'. The other choices are:
Indexation: index income benefit & premiums by 3% each year or
Escalation: Income benefit will increase by 3% or 5% pa. premiums remain level.
Quote also specifies Guaranteed Premium Type. The other choice here is Reviewable Premiums where they review the premium every 5 yrs.

I'm 32 and looking to take this policy out till age 60. I'm leaning towards Escalation & Guaranteed Premium Type. Is this advisable?
Anyone any comments/suggestions re choices available?

Thanks,
DillonS.
 
Thanks for that RS2K, yes that's what I was thinking so I'm looking at the Guaranteed Premium Type. Any opinion on whether to go with standard 'Level' Benefit or Escalation (Income benefit will increase by 3% or 5% pa)?
 
Escalating claim is a good idea, but costs more.

If your term (to ceasing age) is longer it's more important.
 
Clubman's comments are always good but this one here is well worth a read.

This key post on PHI (I didnt realise that they are essentially the same thing) is very well put together but is a few years old.
 
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