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Income Protection

  • 30-09-2015 8:06am
    #1
    DanTomKelly
    Registered Users Posts: 40 ✭


    Hi,
    I took out an income protection policy when I was self employed.
    Now I am employed by a company which has an income protection policy as a core benefit and it's also a better policy both in terms of what it pays out and cessation age. The deferred period is 26 weeks for both policies.
    Is this a no-brainier that I should stop paying into the first policy or is there a case to continue to pay into both. Maybe the fact that I would get 2 payouts is an advantage?


Comments

  • #2
    NewCorkLad
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭NewCorkLad


    Income protection can only pay out 75% of your current income having any extra cover is a waste of money.


  • #3
    DanTomKelly
    Registered Users Posts: 40 ✭DanTomKelly


    NewCorkLad wrote: »
    Income protection can only pay out 75% of your current income having any extra cover is a waste of money.

    Even if it's 2 policies from 2 separate providers?


  • #4
    NewCorkLad
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭NewCorkLad


    DanTomKelly wrote: »
    Even if it's 2 policies from 2 separate providers?

    Yes, it would 75% of your income less any state benefits or other income protection benefits. If you have 2 policies the life companies would probably pay half the amount each.

    https://www.irishlife.ie/life-insurance/income-protection


  • #5
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Go with your employers policy, as they are covering the cost for you. If you leave employment and have not claimed against the plan you can always start a new plan, although the monthly premium will change. If you are claiming against the policy through your employer, you will not be leaving their employment if you are out on long term illness/injury benefit.

    Thanks,

    PaulM


  • #6
    Oral Surgeon
    Registered Users, Registered Users 2 Posts: 3,240 ✭✭✭Oral Surgeon


    If it were me, I would look into keeping your own policy and asking your employer to give you the value of their policy in another way, pension, perk, raise etc…

    You are paying x/ month for a policy now. If you stop this policy and take your employers and then leave that employment in a few years time you may need to take out your own policy again at a higher rate per month…..

    my 2 c


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  • #7
    DanTomKelly
    Registered Users Posts: 40 ✭DanTomKelly


    Oral Surgeon wrote: »
    If it were me, I would look into keeping your own policy and asking your employer to give you the value of their policy in another way, pension, perk, raise etc…

    You are paying x/ month for a policy now. If you stop this policy and take your employers and then leave that employment in a few years time you may need to take out your own policy again at a higher rate per month…..

    my 2 c

    Good point. Especially as I occasionally flip between perm and contract roles. My decision would be easier if the employer's policy was less attractive.


  • #8
    padjo5
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭padjo5


    OP, if you are reluctant to cancel your personal plan or wish to retain it while also joining the new scheme you may be well served reducing the monthly benefit (and cost!) on your personal plan to an appropriate level, provided your Life Co. will allow you increase it in a number of years, should you leave that employment,...just something to consider. Paddy


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