Health Insurance or Income Protection?


I currently pay £77 a month for a Vitality Life Policy through my employer. Pretty much all singing and dancing with a 2 yr Moratorium clause. Never had a medical. I’m 45, no pre-existing conditions and, as of a couple of months ago, now taking HRT. Never claimed.

When I started 3 years ago the plan was less than £50 a month, but has now crept up to £77, including a massive 20/25% hike last year as I would be turning 45 in the coming year.

As money is always a bit tight, I’ve done nothing that required me to spend money, so all my exercise is free – no gyms, fitness trackers, etc. The area is lovely and quiet and has great areas for running/walking. I do free weights and yoga at home.

I work from home in the country and get no rewards of note – everything is so far away I have to drive silly distances to claim anything. Several miles drive for a ‘free’ starbucks or 50 minutes to a cinema when the local community cinema is 7 minutes away and cheaper, even taking into account the ‘free’ cinema ticket. The closest participating gym is half an hour drive and costs £55 a month. Some other discounts are only available at higher levels of engagement, so really I’m paying for it.

Bottom line is, I get no rewards of any use to me.

An email has come out from my firm stating that next year they will introduce an annual policy excess of £250 for bronze level and £100 for silver level to ‘encourage’ engagement to higher scheme levels. So if I claim, I pay the excess. If I don’t want to pay the excess, I must spend the money and engage fully with the scheme to get to gold level.

At the same time an email came out reiterating the sick policy, 10 days full pay and 10 days half pay.

I feel like I’ve been half asleep and these two emails have jerked me awake. If I get sick for any length of time I’ll still be out of pocket, regardless of the health insurance.

I would be better off with an income protection policy wouldn’t I? I actually feel really stupid for not seeing it before. I can’t pay for both so have to pick one.

Last edited by Cottage Economy; Today at 12:09 PM.

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