I am after getting something to provide an income if I get sick (I’m a contractor working through own Ltd. company). Anybody know anything about PHI? I have heard lots of hooror stories about critical illness cover, is PHI any better? (Been quoted £60 per month, for £1500pm cover after 3 months of illness, not reviewable, own occupation).

For my sins I am an IFA and therefore not to be trusted! 🙂

Drop me a line on john at flowracing dot co dot uk

I’ll see if I can answer your questions

We get it through work for free (well as a taxable benefit) set at 75% of salary.

One guy did get a very serious brain infection and had major surgery and was off work you 2 years. It kicked in after 6 weeks and paid him 75% of his salary till he came back to work.

PHI shouldn’t be a taxable benefit.

F

Like any insurance, it’s of great benefit if you need to call on it.

Don’t go with simply the cheapest, ask about the claims history as it is worthless if they wriggle out of it when you try and claim.

Friends Provident have always had a pretty decent contract but not overly cheap. Check the market yourself or find a local IFA. DON’T buy it from a bank or building society.

Critical illness will only pay out after a specified illness so is not comprehensive cover. As a contractor your premium will be higher than normal, but to be fair, only because your job is riskier than most for injury.

Thanks for your advice, esp. Slowjo-thanks for the offer. The quote was for Friends Provident, so if they are OK i’ll go with that cuz I have been putting this off for years.

FWIW Friends Provident currently have arguably the best contract on the market…not the cheapest but there again, when have mountain bikers every wanted the cheapest anything?