Income Protection - Exclusion?

Hannaho

Hi! I recently got very expensive income protection insurance through Friends First with no exclusions. I then got income protection insurance through my union and it was half the price, and much better cover, with a shorter period for claim. Although, I gave the same information to both companies, the union income protection policy through Irish Life excluded me for a pre-cancerous skin condition. It's a condition I have checked every six months, which my dermatologist says will not kill me - T.G.! Anyway, my dilemma is should I take the much better and far cheaper - e100 per month cheaper - income protection policy with my union even though they are excluding me for this skin condition, while Friends First are not? Is it better to go with a policy where there are no exclusions, despite the price?

Browney7

Seems strange to me that the difference is so large. I'd check to see if the union plan is a reviewable premium or if it's guaranteed until the end of the policy.

Liam D Ferguson

Thankfully your skin condition will not kill you - but could it potentially cause you to be out of work? That's what Income Protection cover is all about.

If you're absolutely 100% sure that your skin condition will never cause you to lose any time off work then go with the cheaper policy. If the condition is excluded but you're happy it will never be the cause of a future claim, then go with the cheaper price if you've checked out all details (including the one that browney7 makes) and are happy that in all other respects they're identical.

If there's even the slightest possibility that your skin condition could cause you to be off work sick in the future, then go with the Friends First policy so that it will be covered.

oldyouth

Very surprised that the Friends First policy doesn't have an exclusion for any form of pre-existing condition, regardless of the likelihood of it leading to a claim

coylemj

oldyouth wrote: »

Very surprised that the Friends First policy doesn't have an exclusion for any form of pre-existing condition, regardless of the likelihood of it leading to a claim

+1 I'm a bit puzzled by that as well. Even though the OP says the FF policy is a lot more expensive, these insurance companies don't tend to take on people with known conditions that could lead to a claim.

Liam D above (who is a pro in this field) is correct, the policy you're describing deals with loss of income rather than death.

Perversely, having a non-life threatening condition makes you a bigger risk to an insurance company for this type of policy since you could be out of work (and claiming for loss of income) for years whereas a condition that kills you off quickly would be a better outcome for the insurance company!