Critical illness insurance cover

[sourcreamnchives]

Anyone got this? What kind of premiums do you pay and who with? What is the payout? Scratching my head over whether to take this out I'm 53 and healthy but feel it's a worthwhile consideration?

[Oreocrumbs]

I have it, I'm not massively clued up but I took it when I was sorting life insurance and my will. Mine pays out one years salary (£30k) I also have global health cover added on, which I believe means if I get a terrible disease that there is a better treatment abroad for, then they will pay my medical bills to be sent to that country. I believe the critical illness cover is around £10 per month and £3/4 per month for the global cover.

I used a financial advisor and they sorted this out along with life insurance. I would recommend you do that. In my case because I have other incomes from businesses I wouldn't actually be without an income if I became too ill to work, hence I have only opted for 1 years salary pay out. If you are an employee and that is your only income then you may want 2 or 3 years salary, and the premiums you pay would obviously reflect that. Really you need to be talking it through with an advisor as there are so very many variables... your age, health, risk factors, family history, job, amounts of money. No two policies will ever really be the same, and are priced in accordance with each persons situation.

[Oreocrumbs]

Oh my policies are with aviva, but it was arranged through an advisor so that just happened to be the best provider/price for my situation.

[sourcreamnchives]

Thanks. How much did the financial advisor cost

[2ndAugust]

It can be pretty expensive once you pass 40. My friend had an existing policy from her 20’s when she need a triple heart bypass and it paid off her whole mortgage. (£300k) Myself and DH are trying to set some up at the moment but can only really afford £25k payout each for under £100 per month premium. As more people will have a critical illness than die before retirement it’s really worthwhile. If you have a mortgage broker they can find you the most cover for your budget.

[Oreocrumbs]

I didn't pay for the financial advisor, I paid for the Will writing service (can't remember what that cost) and she recommended some one, so money was never discussed. And I was never billed so I presume therefore they earn their money on a commission from the insurance policies they sell.

I'm really not an expert in this area. I know there are some financial advisors that are independent and you pay for and there are others who earn commission selling you one of a selection of policies.

[MissConductUS]

Have a look here:

www.investopedia.com/articles/personal-finance/010416/critical-illness-insurance-who-needs-it.asp

In my mind, it's never been worth it because the coverage is so narrow. On average I think people are better off just investing the money. These policies are huge moneymakers for the insurance companies and pay high commissions when they're sold, which is why they're pushed so hard by financial advisors.

[barberousbarbara]

I took out critical illness cover when I bought my house when I was 36. I did it through my bank and it cost me £25 per month on a small mortgage.

7 years later I was diagnosed with stage 3 breast cancer (currently cancer free) and they paid out. During the 7 years I'd remortgaged to better rates and overpaid. When the payout came the insurance policy was worth £8,000 more than the outstanding mortgage. They paid the mortgage off then the remaining was paid as a cash lump sum.

I'd recommend it based on my experience but as others have said the payout criteria is quite narrow.

[Teawaster]

My husband had it and it was paid out after he developed stage 4 colon cancer .There was no issue with paying out. I also have it and increased it after my DH died . My financial advisor investigated various options at the time and we went with his recommendation. Probably due for a further analysis now to see if I am still getting a good deal