Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Stephen.C on April 05, 2014, 06:49:24 pm
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Do you think they are worth it? I can not get a descent priced one. I have got a financial adviser working on it but bloody expensive.
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Worth it if you go sick. Rubbish if you don't. You still pay out even when sick.
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Nope.
Work out how much money you NEED each month.
Then look at your savings account.
Rather than seeing (say...) £9,214.67c in your account-look at it as 3 months in front of your bills.
Then look to see how much you'd have to pay to have all your bills covered for that 3 months. Not the standard policy's of 70% of turnover or £500PCM or whatever.
What difference will that actually make to you? Little? Almost none?
Being vigilant with saving is much better IMO.
Have an emergency find that you NEVER touch unless you CAN'T work.
That is much better, and a damn sight cheaper.
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I've been talking about this with a self employed plumber. He said he has a policy that covers his bills (and a bit more) and starts from his first day off.
He said he pays £60 a month (I think, which he puts through the business) and he says he'll be glad if he never uses it.
I thought that was a good way of looking at it. If you don't use it, you're earning more anyway.
It's an insurance.
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It's not cheap!
(http://www.cleanitup.co.uk/smf/1396729690_Income.jpg)
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I've been talking about this with a self employed plumber. He said he has a policy that covers his bills (and a bit more) and starts from his first day off.
He said he pays £60 a month (I think, which he puts through the business) and he says he'll be glad if he never uses it.
I thought that was a good way of looking at it. If you don't use it, you're earning more anyway.
It's an insurance.
That's the way I was looking at it, it has to be set up properly and the one I'm looking into is around that.
Heard some real horror stories lately with blokes having accidents/ becoming ill, plus a very good mate who is only 50 has had a brain haemorrhage which shook me.
Makes you think.
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It's not cheap!
(http://www.cleanitup.co.uk/smf/1396729690_Income.jpg)
That is accident and sickness I'm on about income replacement. That's is for life, it will only pay based on your profit.
I know what you are on about that's why I went to our financial adviser.
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Exeter life.i think...............try them
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http://www.thehub360.com/4/post/2014/04/1.html
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The one I use also doubles as a savings plan (not much but better than nothing) but is not an insurance for permanent income replacement.
It's all a gamble - I was offered critical life cover for my mortgage once - I was in my late thirties and super fit, couldn't see any point in the extra expense, I ate healthily went to the gym three times a week and cycled 150 miles every week. Couple of years later I got cancer ::)roll.
Problem with this job is any accidents or illness and you're stuffed if you work alone. You can go from £1000 a week to £0 per week very very easily.
Of course there are some guys who abuse the system already - you know the ones, bragging about their incomes, finishing by two thirty, starting at ten thirty who already rip their income from the state. 'Lifestyle choice' is the term they use. Loss of income for them would probably make little difference.
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Or you could employ/franchise so that you are covered in the eventuality of sickness or eventually retirement. That's how I am looking at it. Obviously it isn't instant.
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The one I use also doubles as a savings plan (not much but better than nothing) but is not an insurance for permanent income replacement.
It's all a gamble - I was offered critical life cover for my mortgage once - I was in my late thirties and super fit, couldn't see any point in the extra expense, I ate healthily went to the gym three times a week and cycled 150 miles every week. Couple of years later I got cancer ::)roll.
Problem with this job is any accidents or illness and you're stuffed if you work alone. You can go from £1000 a week to £0 per week very very easily.
Glad you well now Dave, when I look back at my days in print, some of the chemicals we used are banned. Possible link Dave?
Of course there are some guys who abuse the system already - you know the ones, bragging about their incomes, finishing by two thirty, starting at ten thirty who already rip their income from the state. 'Lifestyle choice' is the term they use. Loss of income for them would probably make little difference.
Glad you are now well.
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Or you could employ/franchise so that you are covered in the eventuality of sickness or eventually retirement. That's how I am looking at it. Obviously it isn't instant.
'Spose that depends on how sick you are. I reckon you'd still need to be involved in some way and that might not be possible.
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I would agree with Poleking
Being vigilant with saving is much better IMO.
Have an emergency find that you NEVER touch unless you CAN'T work.
That is much better, and a damn sight cheaper.
Personally I'd suggest a FTSE Tracker in an ISA, invest as much as you can for as long as you can, compound growth is a fantastic tool, if you do need to spend then try to stick to the income it generates not the fund itself.
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the only problem with putting money aside that I could see was if I became Ill in say six months time then any funds I'd put away would be minimal because they simply hadn't had time to accumulate into a proper fund. Whereas a proper scheme would start to pay out fairly quickly.
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the only problem with putting money aside that I could see was if I became Ill in say six months time then any funds I'd put away would be minimal because they simply hadn't had time to accumulate into a proper fund. Whereas a proper scheme would start to pay out fairly quickly.
Good point.
You're paying out for peace of mind not as an investment. When you start mentioning words like cancer these payments don't seem as big of an issue.
I don't see an ambulance and think 'I don't get my moneys worth from that service, I really should use them more' ;D.
It's something you hope to never have to use but want one to turn up if needs be.
I don't have a policy, btw :-\.
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You could simply fall and break a leg or a collar bone - so easily done. I broke my collar bone when I was a printer and was off work for seven weeks. If it happened in this job I'm not sure how long we could last with zero income. Not long in my household I'm sure, especially if it happened after the Christmas period and having just paid a whacking great tax bill. Still have to fork out on tax again six months later too.
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Before taking on any insurance policy you need to put pen to paper and work out how much
you would need to cover expenses for a period of time.
I'm not talking about what your spending now but what you would need to get by if your money was to
stop because of sickness.
You would then know how much you would need to keep you going for 6 months or even a year.
Then you need to remember that life insurance and critical illness cover is not the same as short term sickness
cover. Some seem to be mixing these up.
Certainly taking out critical illness on a large loan such as a mortgage could be seen as a wise idea as they normally
don't cost a fortune.
But for sickness I do the same as PoleKing and put a percentage of my earnings away for an emergency.
The reason I do this is that Iv never found a policy that looked value for money or didn't have a long list of get out
of paying clauses in favour of the insurer.
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Put all spear cash into a property and let your tenant make you rich.Britain is one of the only property markets in the world were you can cover your mortgage with a tenants rent.I have work in the property game in three continents and the U K bricks and mortar is the best investment by far. Insurance and ISA s only build the company`s property portfolio.ASK YOURSELF, WHY TO INSURANCE INVEST IN PROPERTY.
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Long term yes but useless for sickness cover.
I must admit I only have a sickness plan not an income replacement plan.
Then of course there is a pension to think about even if you stay healthy.
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Anyone thinking of taking out one of these policies should first look at their taxable income. On average these companies will only pay out around 65% of your taxable income NOT 65% of turnover. I.E it would be absolutely pointless signing up for a policy which is meant to pay out say £800 per month, if your taxable income does not support this. Unfortunately agents will not make you aware of this as it makes these policies less attractive, instead they will try to get you to pay large monthly installments which will promise large payouts, then you will be asked to sign a form (which they may, but probably won't read to you) which states you have not been given any financial advice from the agent.
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Bang on, that is why most think, I have turned over x so I'm entitled to x.
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Put all spear cash into a property and let your tenant make you rich.Britain is one of the only property markets in the world were you can cover your mortgage with a tenants rent.I have work in the property game in three continents and the U K bricks and mortar is the best investment by far. Insurance and ISA s only build the company`s property portfolio.ASK YOURSELF, WHY TO INSURANCE INVEST IN PROPERTY.
So buy another house? The rent isn't going to cover your own bills, is it? And what if you haven't had time to buy one or build a nest egg? A plan can kick in straight away but you could save for years to build up an emergency fund.
You can have savings as well and some sort of insurance could be seen as safeguarding them. Knowing your bills are covered if out of work could be enough to justify the expense.
It's personal choice.
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"He said he pays £60 a month (I think, which he puts through the business)"
Hope he doesnt get audited then, ive been looking into it lately and was told directy by the tax office that you definately CAN NOT put income protection/sickness through your books. Also the prices quoted on the comparison sites are based on you being 100% fit.any family history of heart conditions etc whacks it up as does anything less than a good bmi index. Ive given up on it, if the worse happens i'll employ someone, at least i'll get something coming in.
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"He said he pays £60 a month (I think, which he puts through the business)"
Hope he doesnt get audited then, ive been looking into it lately and was told directy by the tax office that you definately CAN NOT put income protection/sickness through your books. Also the prices quoted on the comparison sites are based on you being 100% fit.any family history of heart conditions etc whacks it up as does anything less than a good bmi index. Ive given up on it, if the worse happens i'll employ someone, at least i'll get something coming in.
Dunno. That's what I presumed he meant.
He did say that it covers his bills not his income. A few seem to be getting that mixed up.
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"He said he pays £60 a month (I think, which he puts through the business)"
Hope he doesnt get audited then, ive been looking into it lately and was told directy by the tax office that you definately CAN NOT put income protection/sickness through your books. Also the prices quoted on the comparison sites are based on you being 100% fit.any family history of heart conditions etc whacks it up as does anything less than a good bmi index. Ive given up on it, if the worse happens i'll employ someone, at least i'll get something coming in.
I was also told you can not put this through your business account.
I think I have got one sorted.