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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask for your views on critical illness cover

93 replies

Bearbehind · 21/03/2015 19:20

I'm naturally quite a risk adverse person so if I can insure against something I generally will however critical illness cover is such a lot of money (particularly if you smoke) that it seems the chances of it actually paying out in the event of illness are so slim they outweigh the cost of the cover.

I mean, if you've ever been to the doctor for an ache or pain, is ist going to bite you on the arse in the event of a claim in that it would be classed as an existing condition, even if it wasn't?

OP posts:
TrollTheRespawnJeremy · 21/03/2015 20:56

A friend had a heart attack and didn't realise she had critical illness cover.

When it was discovered it paid off her mortgage and took all of the pressure off her. She now is feeling relatively healthy and is working part time (and is mortgage free!)

So long as you're honest I think it is worthwhile.

littlebillie · 21/03/2015 20:57

UTTER CRAP saying they don't pay out our firm has 3-4 claims a year which are satisfied. Don't believe the naysayers it is worth EVERY penny for peace of mind

MovingOnUpMovingOnOut · 21/03/2015 20:57

If he's 55 it's probably not worth bothering with a policy. He's only got what, 13 years left until retirement age?

Retirement age is important because people draw a fixed income (pension) and they are more likely to claim.

However, a year even at 55/56 is still small fry vs the smoking.

What's your premium on it's own op? It might be better to go for a level term life insurance policy for your dh and CIC for you??

littlebillie · 21/03/2015 21:00

BEARBEHIND be very honest with your application and ask to see your doctors report. If there is anything they have missed call the underwriters and let them know. For example if you have cancer when you start the policy they obviously won't pay out.

Original poster
Bearbehind · 21/03/2015 21:00

That's what I'm thinking now moving

The cost of mine is small fry and I have many more working years ahead of me (mores the pity!)

OP posts:
FunMitFlags · 21/03/2015 21:01

Mine paid out when I was diagnosed with cancer a couple of years ago. It was a life-changing amount.

SwedishEdith · 21/03/2015 21:02

I took mine out over 20 years ago when first bought a house. It cost £15. On the 20th anniversary they wanted to more than double my monthly premium or reduce the cover. On checking moneysavingexpert I found out this increase in premiums just keeps going so bear that in mind if you take any out. I'd just assumed mine would be a fixed amount forever.

BatteryPoweredHen · 21/03/2015 21:03

The awful thing is, the more expensive it is, the more you need it - the premiums are high because it is very likely to pay out.

I know it is stating the obvious, but your DH really, really needs to give up smoking.

littlebillie · 21/03/2015 21:05

Cancer is 1 in 4 before 65

Original poster
Bearbehind · 21/03/2015 21:15

I don't doubt that little but isn't it pissing in the wind to insure against it 10 years prior?

OP posts:
PigletJohn · 21/03/2015 21:17

When I set up on my own, I took out PHI rather than critical illness. My view was that if I was insured for 25 diseases, I would be sure to get the 26th.

Look for a policy where the test is "unable to do your own job" rather than "unable to do any job." If you are a steeplejack who loses an arm you don't want your claim rejected on the grounds that you could be a receptionist.

littlebillie · 21/03/2015 21:18

Depends how concerned you are if you don't have it, this is a risk and the smoking increases your claim risk by 50%

Do you have enough savings pension money to pay off the mortgage

littlebillie · 21/03/2015 21:19

I had both Critical illness and income protection

wonkylegs · 21/03/2015 21:30

We looked into this as part of our insurances and review on a regular basis with our IFA. I cannot get cover as I have rheumatoid arthritis - they either exclude me because of the disease or the meds I take to control it. Funnily enough I have life cover and I used to even have health insurance but critical illness I'm too risky. My IFA says I'm his only client he hasn't managed to get a quote for though.
My DH is covered by work & income protection so it wasn't worth it.

Koalafications · 21/03/2015 21:37

found out this increase in premiums just keeps going so bear that in mind if you take any out. I'd just assumed mine would be a fixed amount forever.

That only happens if you opt for premium escalation. It starts out cheap and then becomes more expensive. You can get cover where the premium is fixed for the term.

SurroundMeLikeAnOcean · 21/03/2015 21:42

Income protection is the insurance that pays until retirement age. You get checked regularly by the life company to make sure the claim is valid. Eg photographed carrying shopping if you claim you can't work for bad back.

Critical illness pays out if you get a life threatening illness. It pays out quick. A sailor was flown back to uk within 48 hours when his wife had a brain tumour - it paid out 250,000 and they started a small business - she made full recovery within a few weeks and still ok after 20 years.

A friend got 750,000 after paying 90 per month, just within 3 months of the policy expiring - she got leukaemia and is still alive 5 years later - kids now set up for life.

Life insurance - yes
Critical illness - yes
Income protection - Hmm

SurroundMeLikeAnOcean · 21/03/2015 21:50

There is a lot of confusion ime.

Life insurance cover pays out because death can be ascertained.

Critical illness pays out quick if a consultant says you have x or y. it is rare, but if you pay a monthly premium you can afford wont miss it if you don't claim, but will benefit if you do.

Income protection is OK, but the life companies will continue to monitor, and the premiums are high due to risks/claims for the underwriters.

Anyway, look at the smallprint on all accounts, cards, mortgagee etc. often there is 5k to 25k included in the very, very small print.

MsJudgementalPants · 21/03/2015 21:53

Just make sure you disclose everything because in the event of a claim they WILL get hold of your GP records.

FunMitFlags · 21/03/2015 22:04

My critical illness payout wasn't all that quick. I was diagnosed in Feb and made the claim pretty much straight away. I didnt get the money until November, long after I'd finished chemo and had the all clear from cancer.

unlucky83 · 21/03/2015 22:09

I don't have it - actually they wouldn't touch me cos I have a dodgy medical history (cheerfully I can't get life insurance either!). And actually I would be fine anyway -without being able to work or DP being able to work (House paid for, no mortgage, money in the bank etc) until official retirement age....we would have to be more frugal but could survive...

But true of any insurance for every claim they pay out that money has been paid in by someone who hasn't needed the pay out -they weigh up the risks and they are stacked in their favour (or they would go bust!).
Unless you really really couldn't cope financially you would probably be better paying the money into a high interest account to increase your safety blanket. Unless you end up being the 'lucky' (or unlucky) person who does need it....
If money is tight anyway and you would really struggle it might be worth finding the money for it...depends on your circumstances.

littlebillie · 21/03/2015 22:38

unlucky83 that's sounds fine if you have the money to put away, however most people's mortgage is for around 25 years. Life and critical illness only are valuable if you have a debt or longstanding commitment like raising kids.

In the USA they brag about how much cover they have, we are the worst here for cover and protection for women.

JohnCusacksWife · 21/03/2015 22:46

I pay £50 a month for income protection / permanent health insurance. It'll pay out in the event I can't work for a period of time or am diagnosed with a serious/terminal illness As I'm the main breadwinner for our family it's worth it for me. I pay it every month but so hope I'll never need it. Although it's. lot of money I guess you have to think how you'd feel if you needed it but didn't have it.

MorrisZapp · 21/03/2015 22:49

Would they take mental illness into account? I'm on anti despressants following PND, have been fine for years but can't get off the tablets. Would that put my premium up?

Also does it apply strictly to illness as opposed to critical injury?

unlucky83 · 21/03/2015 22:50

I'm only suggesting you put away the money you would have paid in critical illness and life insurance away ...no more.
And maybe I wasn't clear - if money is tight, then it might be worth getting it -finding the money for it.
It is a gamble - but upthread people were talking about the cancer risk being 1 in 4 etc etc - you are likely to need it - but the insurance companies know all that - they know the risks better than we could calculate them - and the odds are in their favour...

littlebillie · 21/03/2015 22:55

MorrisZapp I dont you would be rated for that condition with CIC but you would have exclusions with income protection.