Best Value Contractor Sickness Cover

[Coolshot]

I've been contracting for a few years now, at 31 & in good health hadn't bothered with any sickness cover. However a friend of mine, same age (in a permie role) was taken ill with a long term serious illness. This made me think I should get some cover in place. My mortgage repayments are covered in the event of death or illness but I don't have any other cover.
I have Professional Indeminity & Public Liabilty cover with QDOS so I started there. They offer a sickness cover of £1,500/month for upto 12 months for £35.86/month. The T&C seems reasonable & fair.
Can anyone recomend any other companies I should look at to compare cover? Also interested to hear if anyone has made a claim & how easy it was to actually receive the payments.

[Sausage Surprise]

It's what your war chest is for shirley?

[Coolshot]

I have one of those which would keep me going for 12 months, longer if I adjusted my spending. However if I was thinking along the lines of a serious illness/disabilty which left me unable to work for years/forever. Perhaps this is just a risk in Contracting. Someone from Contractor Financials is going to call back later as they have some products I want to have a look at.

[woohoo]

I have one of those which would keep me going for 12 months, longer if I adjusted my spending. However if I was thinking along the lines of a serious illness/disabilty which left me unable to work for years/forever. Perhaps this is just a risk in Contracting. Someone from Contractor Financials is going to call back later as they have some products I want to have a look at.

I would be interested in this, let me know how you get on.

I've just been thinking about getting life insurance, who are you with?

[Coolshot]

I would be interested in this, let me know how you get on.

I've just been thinking about getting life insurance, who are you with?

I don't have any at the moment! Only the mortage gets paid off by the bank if I croak. I don't have any dependents so I've never got round to it. I used to have it with my permie role a few years ago. I'll update when Contractor Financials quote.

[Jessica@WhiteFieldTax]

If you have a warchest, then think about a longer deferred period on your PHI. If you take a 3 or 6 month deferral, it can cut costs.

Also think about tired cover, eg when I was a mortgage slave I had a two year sickness and accident policy that cut in after two weeks, then a six month deferral on a larger PHI policy that ran till retirement. Thinking was the two year policy gave breathing space in the event of a serious illness, then, if something went on longer, I could tailor my household costs to match the PHI benefit.

[downsouth]

try the guys at lifesearch, always helped me out when looking for a policy

[Gonzo]

I don't have any at the moment! Only the mortage gets paid off by the bank if I croak. I don't have any dependents so I've never got round to it. I used to have it with my permie role a few years ago. I'll update when Contractor Financials quote.

If you have a warchest, then think about a longer deferred period on your PHI. If you take a 3 or 6 month deferral, it can cut costs.

Also think about tired cover, eg when I was a mortgage slave I had a two year sickness and accident policy that cut in after two weeks, then a six month deferral on a larger PHI policy that ran till retirement. Thinking was the two year policy gave breathing space in the event of a serious illness, then, if something went on longer, I could tailor my household costs to match the PHI benefit.

Jessica's response provides an example of why it is a good idea to take professional advice that takes into account all your personal circumstances because there is probably more to take into account than you realise.

This means talking to a financial adviser.

My own thoughts are that a contractor would self-insure using their warchest for the start of the sickness/disability period and have a policy set up that could be claimed on after 6/12/24 months have elapsed, or however long the warchest will last.

The longer the deferred period is, the lower the premiums will be. I would question the value of a policy will only pay our for a limited time. What happens if you are ill for longer?

DISCLAIMER: I am not a financial adviser!

[TheFaQQer]

Also think about tired cover

I'm always tired these days - will they pay out?

Failing that, should I look at tiered cover instead

[Coolshot]

To update

CF have come back with the following inflation proofed benefit policy from Unum Provident

Benefit £2,550/month with 3 month deferral =£53/month, with 6 month deferal = £41/month
Benefit £3,400/month with 3 month deferral =£70/month, with 6 month deferal = £54/month

This policy would continue to pay until I'm 65 or fit to return to work on an own occupation basis (that is my role as a Buyer, not a shelf stacker).

I posted in the legal/accounting thread about how the income from a policy would be taxed

http://forums.contractoruk.com/accou...rance-phi.html

I need to read through all the T&C's before commiting but think I'll go ahead with the £3,400 on 6 month deferred period.