Is income insurance a good idea? -

i want to be protected if i loose job or am ill to work and i still have mortgage , bills etc to cover. If you can't live without your paycheck, you might need to insure it. If you're not yet ready to retire, you might want a policy that would help get you there. Disability income protection covers you if you are sick or hurt, there is no protection if you "loose (your) job". A sizeable emergency fund like Dimples suggested is a good idea for many reasons. It will also allow you to keep your premiums lower by being able to afford a longer waiting period before your coverage pays. Make sure you get a good company and check the small print. If your needing help contact me. Your choices are Pay insurance incase something happens Pay a policy that pays out if you claim and if you don't claim you get all your money back at the end of the term Which one would you take? The second one is a little more expensive but at least you get your money back. Also if your self-employed you can put it against your books Hope this helps In my opinion income insurance is a bad idea and very cost in-effective. Most financial advisors and/or brokers with securities background will steer you away from such products as there are much better financial vehicles. The best solution is to use those premium dollars allotted to a income certain policy to build an emergency fund. The emergency fund will not bear nearly the same amount of restrictions, will remain portable and also will be readily available in the event of an emergency or loss of job. Income insurance is old school and primary focus was to be an employment incentive for high level executives seeking employment with start up companies. The companies themselves used to pay for the benefits. Income insurance is not considered tax sheltered which is another considerable negative. I think the cost of this type of insurance is relatively cheap so if you can afford it, and are sure you are getting it from a reputable company, and are happy with the cover etc., then I would say go for it. YOu can try http://www.portwood.co.uk/asuone.htm for some ideas. (From January 8th 2008 protection insurance is going to be better regulated by the FSA - which means that companies are going to have to tell you more about the policy before you buy them. This was only announced yesterday!)