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Do I really need personal income protection policy

  • 27-01-2012 3:26pm
    #1
    lubie76
    Registered Users, Registered Users 2 Posts: 1,152 ✭✭✭


    When I got my mortgage 3 years ago, i had to take out PIP policy. I didn't mind at time as was temp worker in the PS at the time. Now I'm permanent in the PUblic service and feel like the €360 a year would be better spent elsewhere but not 100% on the consequences of not having it.
    Would appreciate any advice.


Comments

  • #2
    Tow
    Registered Users, Registered Users 2 Posts: 9,222 ✭✭✭Tow


    You don't need it, a PS job is a job for life :-)
    Anyway if you look through it's terms and conditions you may see loads of limits, such as only paying your mortage for 1 year. If you were out sick the 'system' (Welfare officer) will pay your mortage interest for at least a year anyway.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



  • #3
    lubie76
    Registered Users, Registered Users 2 Posts: 1,152 ✭✭✭lubie76


    Tow wrote: »
    You don't need it, a PS job is a job for life :-)
    Anyway if you look through it's terms and conditions you may see loads of limits, such as only paying your mortage for 1 year. If you were out sick the 'system' (Welfare officer) will pay your mortage interest for at least a year anyway.

    Thanks Tow, job for life or so I'm told ;-) I was nearly 5 years temporary so delighted to get there at last.


  • #4
    TomNeville
    Registered Users, Registered Users 2 Posts: 27 ✭TomNeville


    For someone working in a permanent job in the public sector, it would generally not be advised and would be considered "overselling" in the industry.
    However it all depends on the nature of your job.


  • #5
    digzy
    Registered Users, Registered Users 2 Posts: 3,049 ✭✭✭digzy


    like all insurance you only wish you had it when it's needed.
    Personally, I think it's an utter waste. When i was organising a pension all the brokers push this thing. The main policy on offer had a 8 week wait period before a payment was made. Now baring a complete disaster I dont see how i'd need it.
    I'd advise anyone to put the premium into a regular saver deposit account as a rainy day fund just in case. Now, i've no kids and no mortgage or loans of any description and have savings to live off for a year work free. perhaps if i'd loans/mortgage/dependants i'd have a different opinion.

    No doubt you'll get the whole 'tax relief on contributions' shpeel. just remember any payments you may get will also be taxed so dont let that 'nugget' fool you.

    to sum up, why line the coffers of the brokers and insurance giants with your own hard earned cash.


  • #6
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Public servant or not, income protection is a highly desirable product if you can afford it.

    The best deal you get in the public service is a years worth of sick pay, what will you do after that? €196 a week wont go that far if you are used to a decent wage/ or if you have a mortgage.

    The average ip claim lasts around 5 years, but if you are permanently incapacitated it will provide you an income all the way to your normal retirement age.

    People shouldnt look at ip as a short term benefit, it wont cover you if you are off for work with the flu (if it did the premiums would be huge!).

    Also critical illness cover is not a substitue for a ip policy, it can be a usefull complement but i would always pick ip over ci, as it does not limit what they will pay out for (generally any medical reason, including mental health problems), and you get tax relief on your ip prems.

    Again i say its only worthwhile if you can afford it, i wouldnt go without essentials to pay for it.


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  • #7
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,685 ✭✭✭✭NIMAN


    I've got this for the last 11yrs. And always thought about cancelling it. But mine covers unemployment too I think, so I have always left it in place.

    Its costs me 35 per month, and if its required it will pay out 550 to cover the mortgage for 1yr. Thats a value of 6600.

    So far I have paid approx 4620 into it.


  • #8
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    What you have is payment protection insurance, not income protection, they are very different beasts.


  • #9
    digzy
    Registered Users, Registered Users 2 Posts: 3,049 ✭✭✭digzy


    apologies. i muddied the water
    However when one meets the 'brokers' they make a good argument for everything from critical illness and life cover .......
    I guess it depends on your personality, but if you took out all these things you'd be shelling out big-time. make sure you read small print too. these companies have a habit of not paying no matter how much you may think they should.
    I'd a case a few years back when the spare keys of my car were stolen from my folks house.Insurance told me that they couldn't cover the car if it was stolen as i hadn't taken steps to safeguard it-change ignition etc. TBF they were correct but It'd cop you on a bit.
    I think there's a reason insurance companies exist....profit. They profit at the expense of all of us, so i like to keep mine to a minimum except re the house and car.i'm happy to pay the premium for 'peace of mind'.


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