Income protection insurance

By THIS IS MONEY
Updated:

 

I am looking for income protection insurance paying £1,300 a month. How much will it cost and what key questions should I be asking a broker? I am a 27-year-old male and I smoke, but I plan to give up. RT, Bristol.

Patrick Connolly at independent financial advisers Chartwell Investment Management says: The cost depends on a number of factors as well as your age, sex, the amount of cover you want and whether you smoke or not. These include your general state of health, the type of job you have, whether you take part in any hazardous activities, when you want the payments to start, and how long you want the plan to run for. If you are in a low risk job with no other complications, and looking for cover to start 13 weeks after you are off work, you can expect to pay just over £20 a month.

You should ask your broker if you need to tell your insurer if you change jobs and whether your monthly payments will fall if you stop smoking for 12 months. It is essential that you give your broker details on any income protection you already have in place, including any cover provided by your employer.

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