Other PHI (Income Protection) Policy

[suzie]

I've had this policy for the past 10 years. The provider has recently given me the opportunity of increasing the level of benefit by 30% without the need of any additional medical.

I'm currently 44. What do people think?, the increase would result in an annual benefit of more than my current annual salary. The additional cost to me after tax relief would be under €400 per year..

As an aside, if one increases such benefits, can they be reduced in the future at my request?

Thanks in advance...

S.

 

[NorfBank]

Ithe increase would result in an annual benefit of more than my current annual salary.

You can only protect up to 75% of your annual income (less state illness benefit if entitled) so there is no point paying the extra premium.

 

[LDFerguson]

You can only protect up to 75% of your annual income (less state illness benefit if entitled) so there is no point paying the extra premium.

+1

Contact your broker, tell him/her your annual salary and PRSI class and ask them to calculate the maximum level of cover you should have. From what you're saying, there's a possibility that you may already be over-insured, ignoring any increase.