Income Protection Insurance Datasheet. -
cosworth - 07-29-2017
NB: this datasheet talks about the UK insurance market, but I’m sure other countries have something similar.
What is it: it’s basically a policy designed to pay you a monthly fixed sum of cash every month for up to 1 year while out of work because of redundancy, sickness , disability etc.
How much can you get: you can insure up to 90% of your take home pay , so after tax if you get 2k a month you can insure £1800 of that.
Why bother : well in my industry redundancy happens all the time. In most companies you can sniff it out , i.e. company looking to sell , sales figures looking bad.
When to take it: take it when you have a bad feeling something might happen, you need the policy to vest for 90 days before you can claim, you need to have been working full time for 6 months. I’ve taken out policies twice now, once 3 yrs ago when my boss gave me a heads up on cuts, the time passed, we started to hire again so I cancelled. The second time the company was looking to sell, and I got laid off after the sale.
How much : it’s cheap IMHO – for a 2k policy its around £50-60 per month. You can take multiple policies as 2k is normally the max as long you only go to 90% of pay..
I’ve taken a year off to travel, trade and do cool stuff essentially being paid and not having to dip into savings too much. Luckily my rent was fairly low , my car paid for and I don’t have any debt so outgoings are low.
Downsides: they make you sign on at job centre every 2 weeks, so I would time my trips for 3 week stints. Called in sick one time , said I was camping in the UK another time just to move my sign on date by a week. You can have 14 day job centre holiday in UK only. You should make friends with your Job centre advisor, will make your life a lot easier.
You need to send insurance company evidence you are going for interviews etc. I am looking for a job so have been to many, just not taken any yet, obviously they don’t need to know that.
My policy is 2k a month, so 24k in total pay out , I paid in about £1200 over the two years I had it . I only wished I had insured myself for a lot more, but alas I never really thought they would get rid of me ..
So if you think you maybe made redundant , sock up on insurance , then travel the world for a year while being paid :- )
Income Protection Insurance Datasheet. -
Perfectionist - 07-29-2017
Great thread bro!
Are there any Insurance companies you would recommend over others?
Can you Insure for more than your income - and do they check what you are/were earning?
Can this work for self-employed people whose income fluctuates significantly?
Income Protection Insurance Datasheet. -
Pinocchio - 07-29-2017
I always take insurance out against my own job, it's a no brainer. I didn't know you had to go the job centre every two weeks though, that makes it a bit shit. Will need to read my contract again, I can't remember that being in there..
Income Protection Insurance Datasheet. -
cosworth - 07-29-2017
Quote: (07-29-2017 12:52 PM)Perfectionist Wrote:
Great thread bro!
Are there any Insurance companies you would recommend over others?
Can you Insure for more than your income - and do they check what you are/were earning?
Can this work for self-employed people whose income fluctuates significantly?
Its a competitive product , so i just went with the cheapest
Yes they check , they ask for 6 months of pay slips. Can only insure your current net take home pay of 90%
Yes , for self employed , but there's more caveats , think you need to get an accountant to verify income or something . Best to look at the policy docs.
They ask for a copy of your bank statement every month to prove you are getting job seekers .. its a pain .
Job center attendance i think is mandatory on most policies.
Income Protection Insurance Datasheet. -
Cattle Rustler - 07-29-2017
This sounds like another layer of unemployment insurance. Never knew this existed. As someone who will eventually get laid off this is a great thing. Sadly this doesn't exist in the US, it does but it works as a "disability/veggie-state insurance" kind of deal.
Any idea of how to get something similar in the US?
Income Protection Insurance Datasheet. -
RatInTheWoods - 07-30-2017
I've never had health, income, or contents insurance.
So far, in 30 years I am about $90K ahead.
Income Protection Insurance Datasheet. -
cosworth - 07-31-2017
Quote: (07-30-2017 12:31 AM)RatInTheWoods Wrote:
I've never had health, income, or contents insurance.
So far, in 30 years I am about $90K ahead.
Yup in some circumstances its a complete waste of money. But I've paid £1200 worth of premiums over 2 years , I'm now getting paid out up to 24k while i look for 1. my dream job .2. travel the world 3. work on my business ideas.
As insurance goes its not a bad risk / reward ratio , especially if you work in a ruthless industry like investment banking.
Income Protection Insurance Datasheet. -
Ethan Hunt - 08-01-2017
Do you have to be made redundant in order to cash in? Or could you quit your job, cash in and work somewhere else?
Income Protection Insurance Datasheet. -
cosworth - 08-01-2017
@ ethan hunt : you need to be made redundant .. and not voluntary either
In a 13 yr London career I've been canned 3 times now .