Income Protection

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Wexfordgal

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I have recieved a quote for income protection of 78.80 a month (after tax) from a broker. It is with Royal London.I am 39, no health conditions, public sector worker. It has a deferred period of 26 weeks . The cover ends at age 65 and indexation cover will increase at 3 percent a year up until 2047.It seems rather expensive, just wondering is that good value.
Thanks
 
I am currently on point 11 0f my salary scale which is 54,500 and the policy states the personal income protection is €30,275 (26 weeks). Apologies if Im not answering the question correctly
 
I ran a quote for you based on the information you provided and those figures have to be before tax relief, not after. I'm getting €79 a month with Aviva before tax relief.

Even at smoker rates, I cannot see that price. Unless your job involves some physical activity and you are not an occupational class 1.


Steven
www.bluewaterfp.ie
 
Hi Steven,
I just double checked the policy and it states €131.85 per month plus €1.32 of a government levy. This is before tax relief. I still need to send RAC cert to revenue. Just to add, I am a non smoker, in good health.
 
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Do you smoke? The closest I can get to that price is occupational class* 2 for a smoker.

*different occupations have different risk levels. An office worker is low risk for example and will still be able to work with a broken leg. The more physical activity you have, the more risk. Mental stress is another one, teachers are class 3 and can only get cover to age 55.
 
Hi Steven,
I am a non smoker, in general good health. No underlying conditions. The policy does cover me up to 65. I am already buying back years for pension, so would not be in a position to retire before 65 anyways. Maybe thats increasing the premium?
 
@Wexfordgal - I think the point being made is that you should get some more quotes.

If you are a union member its worth checking with your union if they have a preferential rate / provider.
 
As @Steven Barrett said, your occupation must be factoring massively. For example a hospital midwife would cost about that level, but an accountant should be half.

Payout to 65 vs 60 changes the cost a bit, but not to that extent.

Have a quick check on lion.ie

It's an execution only broker, so you won't get any advice. They'll show quotes for a few companies and it'll give you an idea of what it should be costing you.

Then contact someone like Steven if you want advice.
 
Anybody have any experience with Cornmarket? I am a public servant but have my income continuance with Aviva and wondering if I would have better benefits with Cornmarket as they deal with my union. Currently paying approx. €60 p.m. for €587 p.w. cover.
 
As Cornmarket have a group scheme it should probably be cheaper, but they can review their rates from time to time, whereas your Aviva policy is probably a fixed rate.

Cornmarket are owned by Irish Life (which I find odd given that Cornmarket call themselves brokers). I would guess that the insurance company underwriting their group scheme is - surprise, surprise - Irish Life. My anecdotal experience (and that of others I know) is that Irish Life go to great lengths to avoid paying out claims while Aviva make it far easier to claim.
 
Dave Vanian said:
As Cornmarket have a group scheme it should probably be cheaper, but they can review their rates from time to time, whereas your Aviva policy is probably a fixed rate.

Cornmarket are owned by Irish Life (which I find odd given that Cornmarket call themselves brokers). I would guess that the insurance company underwriting their group scheme is - surprise, surprise - Irish Life. My anecdotal experience (and that of others I know) is that Irish Life go to great lengths to avoid paying out claims while Aviva make it far easier to claim.
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Thanks for the feedback. A lot there that I didn’t know.
 
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