Payment Income Protection (BOI) for self employed - is it worth it? Do they pay out?

uberalles

Hi,

Self employed and spoke to a BOI insurance person.

The PIP wouldnt be to protect against mortgage payments or another loan, Simply a safe guard against an illness.

I understand that it wount kick in for 13 weeks.

Are these policies notoriously trick to avail of if something actually happens?
Would I be better off saving the money?

The amount in question is 69 Om for 2000 PM in the event of a medical proved aiment.

Liam D Ferguson

This is Income Protection and should not be confused with Payment Protection Insurace (PPI). In my opinion, PPI is poor value for money as it only pays a claim for a maximum of 12 months and doesn't qualify for tax relief.

Income Protection (which you have been quoted) can pay out a claim for a much longer period of time - up to retirement age if you are not going to be able to return to work. The premium also qualifies for full tax relief at your highest rate.

Income Protection is not difficult to claim on, if you have been honest about your medical history at application stage and are genuinely too ill to do your normal job. In my firm, we currently have three ongoing Income Protection claims. Two are being paid (and have been paid for years) and one has been suspended because the insurance company believes that the person could go back to work.

There are four insurance companies offering Income Protection of this type so you should shop around as Bank of Ireland may or may not be the cheapest.

uberalles

Thanks.