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Critical Illness cover / Life assurance recommendations please

(10 Posts)
hanaflower Mon 28-Jul-08 16:30:37

Message withdrawn at poster's request.

anchovies Mon 28-Jul-08 16:33:02

Have a read here we got ours through cavendish, I think it's with zurich but we just picked the cheapest that offered what we wanted.

OldLadyKnowsNothing Mon 28-Jul-08 16:43:06

Be very, very careful to read the T&Cs, especially on critical illness policies, which have a record of being poorly-sold. They can also have punitive interpretations of pre-existing illnesses - eg you want to claim because you have lung cancer, ah, but it says here you had a cough in 1998... angry

If money is tight, maybe think about term assurance for your life policy. 20 or 25 years, or maybe 30 if you're planning more children. The idea is to give yourself enough of a cushion should one of you die while the offspring are still financially dependent, the remaining spouse and children can still afford to live your current lifestyle.

blueshoes Mon 28-Jul-08 18:35:43

hana, agree witholdlady about the terms of critical illness. Get a proper insurance agent to advise you and compare rates.

In general terms, term life assurance is relatively cheap and absolutely essential.

Critical illness is expensive but probably a good idea as well.

Look out for income protection or mortgage protection policies. Income protection which protects against redundancies is incredibly expensive and I have never thought it worthwhile to pay so much to insure against the risk - but agents love to sell you that because they get lots of commissions on that.

As for mortgage policies (if the borrower dies, it pays out to repay the mortgage), I have never been convinced about them as well. Nothing that term life assurance cannot cover equally well.

claricebeansmum Mon 28-Jul-08 18:43:21

There is an independent financial adviser who is brilliant at this kind of thing - they are called Lifesearch.

hanaflower Mon 28-Jul-08 22:51:21

Message withdrawn at poster's request.

blueshoes Tue 29-Jul-08 06:48:28

Hana, it would be good idea for you and dh to check out what your employers offer in terms of benefits, particularly if you are permanent employees.

If you have a pension, it often comes with life cover. I think my company pays out 4 X annual salary on death. Also they provide sickness pay (for up to 3 months) and long term disability insurance which kicks in after 6 months.

pickie Tue 29-Jul-08 07:26:28

We have Zurich as well, good policies! Also be very careful to read the T&C's of life assurance as DH took one and in the end it turned out we would only be paid out if he was a passenger in a car!

mumthatworks Wed 20-Aug-08 21:53:37

Hi, I am a Mortgage Adviser who deals with Life and Critical Illness policies as part of the package.

Basically I always say to clients when working out how much cover you will need...have a think first about what you would need to get by if the other party (god forbid) died or get a critical illness. For example I had clients the other day who took out £250K level life and critical illness cover as they reasoned that if one of them died or got cancer etc that would provide enough of a payout to provide a home for their children fully paid for and also an income for a few years whilst the other partner was either raising the young children in the event of a death or money to cover whilst the other partner was trying to fight a critical illness such as cancer as the last thing you need to be concerned with at times of death or serious illness is money worries and you need to protect your children.

I wouldnt reccomend using your company pension insurance as life cover as there is nearly always a clause in there saying that it is at the discretion of the trustees which means if times were tight for the pension fund it may not be paid and also people move jobs and life and CIC cover is cheaper when you are younger and if you got ill inbetween you may not be able to get cover which would mean your children werent protected.

Hope this helps. If you need any further help with this I would be happy to give you the cheapest options I can find for you...just email me on itmortgages@btinternet.com

Kind Regards
Ceri

LadyMuck Wed 20-Aug-08 22:10:00

Whilst most death in service payments are paid at the discretion of the pension fund trustees/administrators I had thought that this was mainly for IHT purposes (as well as allowing trustees to take a sensible look at who should receive the payment when the employee had not made/updated their nomination). Whilst there is every risk that a pension fund may go bust, I don't think that the DIS payments are "discretionary" in terms of whether the trustees can decide that they're not going to pay them out because they don't feel like it!

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