"....existing executive and clerical scheme members can opt out of the full benefits prior to September and maintain the income protection benefit only at a cost of 1.44% of gross salary.
It's hard to see the benefit for you of being asked to pay an extra 0.45% of salary to retain what you had before.
However, the FORSA document also claims that "Had the schemes remained separate, it’s likely that there would have been significant increase in rates for all the schemes."
So perhaps Aviva would have jacked up the rates too, or closed down the scheme.
Alternatively, the new all-singing, all-dancing scheme has losers and winners and you're one of the losers!
I pay 0.86% gross for Income Protection in the PS.
The Plan provides a Disability Benefit of up to 75% of salary less any other income that you may be entitled to (e.g. half pay, Ill Health Early
Retirement Pension, Temporary Rehabilitation Remuneration, State Illness Benefit or State Invalidity Pension).
Irish Life is the underwriter.
There is auto-enrolment by my employer.
Bond prices have fallen a lot though so I would have thought insurance should be becoming cheaper. I know this can take a long to feed through to prices.I missed that line about likely increases, no surprise I suppose that inflation and general insurance increases in recent years taking their toll in this market also.
I think a lot of this depends on your age, personal circumstances, and overall level of wealth. If I was 30 and had a young family and a mortgage I would insure against disability. If I was five years to retirement with a mortgage paid off I wouldn't be so keen as the potential lifetime drop in income would be pretty small.The new scheme has a headline cost of 1.99% gross salary, broken down to 1.44% disability benefit,
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