Life & Critical Illness Cover..

(13 Posts)
despondentatwork Thu 03-Jun-21 15:35:13

Looking into taking a Policy out for me & my children....I have contacyed an Advisor, but not sure how impartial they are? Can anyone advise on things to look out for in the 'small print'? TY

OP’s posts: |
ThisIsStartingToBoreMe Thu 03-Jun-21 15:47:52

They don't pay out, I wouldn't bother. They will find ANY reason whatsoever not to pay, including the verruca you had aged 7 but didn't declare on the form. Can you self insure instead?

fromdownwest Thu 03-Jun-21 16:42:38

ThisIsStartingToBoreMe

They don't pay out, I wouldn't bother. They will find ANY reason whatsoever not to pay, including the verruca you had aged 7 but didn't declare on the form. Can you self insure instead?

What utter rubbish, as long as full disclosure is provided on application then the pay out rates are near 100%.

Self insuring a £250k mortgage for example would be a lot more than a decreasing term policy.

Dangerous advice.

ThisIsStartingToBoreMe Thu 03-Jun-21 16:47:51

as long as full disclosure is provided on application

Yes but like I said, they find the one thing you didn't disclose. Like the acne you had when you were 17.

AmandaHoldensLips Thu 03-Jun-21 16:51:28

Speak direct to a couple of the good quality insurers like Aviva or LV. They will answer your questions (but only about their policies).

fromdownwest Thu 03-Jun-21 17:02:03

ThisIsStartingToBoreMe

*as long as full disclosure is provided on application*

Yes but like I said, they find the one thing you didn't disclose. Like the acne you had when you were 17.

Just request full medical under writing then, they will write to your GP for full medical records to negate that option.

I would speak to an IFA who is whole of market, they will be able to provide you with a list of the best options for your needs.

The bare bones cheapest is not always the best option.

PleasantBirthday Thu 03-Jun-21 17:05:16

The list of exclusions for these polices is exhaustive.

Looking at them, any time you need cover is pretty much excluded. That's why there's a high pay out rate on claims - the claims that are valid are so rare that they usually do get paid.

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CavernousScream Sat 05-Jun-21 22:20:38

Life insurance almost always pays out, like 96% of the time. Ignore the absolute bollocks advice given earlier in the thread. If you can ‘self insure’ your mortgage in case of your early death then you don’t need a mortgage.

Mablefly Sun 13-Jun-21 07:23:59

In my experience they DO pay out. I lost my Dad to cancer quite young and his life insurance has meant that my mum had been able to stay in their home. I honestly don't know what she would have done without it. There we no questions or challenges whatsoever. Think it was a legal and general policy.

I have a similar policy and declared my family history in full as part of the sign up process.

Roselilly36 Sun 13-Jun-21 07:31:03

Rather than go through this “advisor” get some quotes yourself. Life Insurance & critical illness are essential policies that every parent needs we took both out when our kids were little. Unfortunately, I needed to claim on my critical illness policy, the money was in my bank very quickly after claiming, so I know for certain they do pay out for genuine claims.

chinateapot Sun 13-Jun-21 07:43:21

I’d suggest looking for a policy - probably critical illness - that covers illness in your kids too. I have life insurance and income protection and thought that would cover me as if it was a critical illness that meant I was unable to work then income protection would kick in so no need for both. Unfortunately it was my 6 year old getting cancer that stopped me being able to work and I had no cover for that.

ifadirect Wed 21-Jul-21 17:26:42

Life insurance companies paid out Just under £6 billion in 2019 and that was 98.3 % of all claims. The balance was fraud, non disclosure and misunderstanding. As recently as 2016 there was a death claim for just under £400,000 with forged foreign death documentation. If these claims are paid then the costs of insurance must go up !

But if you have a critical illness policy you must understand what is and is not covered. This will be described in detail in their technical brochures. Make sure you have a copy on your file. You may not even understand it ( I don't) but present it to your doctors and they will tell you whether you qualify for a claim or not.

Most critical illness policies will have free children's cover typically for 25 % of your cover or £100,000 whichever is the lower. Some double that for certain conditions

Most life insurance, critical illness and income protection policies have a range of services available to you and your family even if there is no claim, mostly free and some for a little extra, for example one such extra would have covered the little girl who had to go to New York recently where they were the only place with a possible cure for her cancer

vivainsomnia Thu 22-Jul-21 12:08:51

They do pay out and I know a few people who were successful. The issue is that people fill these in quickly, as a chore, and don't take the time to go through their medical record to ensure they put everything in.

A good friend of mine got diagnosed with MS. The only blessing in this dreadful outcome was that she had Critical Illness Cover that would pay her mortgage, making life decisions easier. This was refused because she had failed to report that she had sought medical care for an eye condition. She'd totally forgotten about it, it was 10 years before she took the cover, was a one off event, and didn't think any of it. Sadly, this condition happens to be directly linked with MS. She didn't know this then nor when she took the cover. They agreed to repay her premiums, but this didn't come close to cover the mortgage. She was devastated.

If you go for it, don't complete it until you got your medical record from your GP and put EVERYTHING that's on it. The only part you can leave out is if you had any diagnostic tests to rule in/out a genetic condition IF you had no symptoms but tested as a preventive measure (because a family member was diagnosed). Even then, it would be best to check that the company is a member of the ABI group. Aviva for instance is part of it.

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