To not get critical illness cover?

[Rainraingoaway10]

Looking at updating our life insurance policies.

unsurprisingly the financial advisor is touting the need for critically illness cover too, but it’s a really expensive extra payment per month

is it common for people with kids to have this coverage? My job has v good sick leave policy

I got cancer and was out of work for two years. My job has excellent sick cover but it is not indefinite.
I'm back in work full-time mainly because I am not cancer free and expect to become too ill to work again and don't know how long that will last before I die so want to maximise my entitlement to sick pay etc for that period of time.
If I had critical illness I would have cleared the mortgage and be able to work part time now.
I'm early 40's.
I recommend it to everyone.

@Echio speak for yourself, I intend to live forever but yes it made sense in my head before posting ha.

Bastards. So sorry

I'm also a civil servant. Took out critical illness cover when I was a single mum, cost £15 per month. It paid out 50 grand when I got MS.

That wasn’t a Critical Illness policy then. CI policies pay out a lump sum based on a diagnosis of a critical illness and usually surviving for a particular amount of time (and it’s quite a high bar that you have to meet in terms of how serious the illness is). It’s not related to your ability to work. What you’ve described sounds more like income protection.

Not quite - Critical Illness is a lump sum, so they don’t have to keep paying out over a long period of time. I think you’re thinking of income protection, which continues to pay out if you can’t work due to ill health.

The problem I see is that they don't do a critical illness mortgage cover. We were quoted £85 per month for £40k lump sum. That wouldn't pay off the new mortgage we are getting. We are in 50s so assume why but still, it's expensive for not that much return.

@lemonyellows that's why we have income protection too

I have life insurance and critical illness insurance that covers me and 1dc and pay £48 combined with a great policy.

Can you get a anything via work? That seems extortionate!

Granted, my industry does do benefits well, but I only pay £11 pm for a £125k CI payment, surely shouldn't be costing 100 pm!

I cannot get critical illness cover, only life insurance - which I have.

But I am in the union, who do provide cover regardless.

I just checked it's actually £28 for both. £9 life and £18 for critical illness. It's with vitality.

I only got it last year (I was 48). Should have got it earlier really. We were advised to get it when we bought our first house. I think I was 29/30 but quickly became pregnant with first child and mortgage and nursery fees left nothing spare! I've had no serious health issues in between which was very lucky. I feel like I took a gamble saving on the premiums for those years. I think I pay £45 per month for £50k cover which I think is expensive but it covers almost all conditions which a lot of policies don't (even suicide triggered by mental illness or addiction issues, not that I'm planning to to that way!). We have paid off mortgage so 50k is enough to keep us afloat for a while to downsize if needed. I also have 25k cover as an add on to my husbands work policy though it covers less conditions. Ive got seperate life cover which pays out for death and terminal illness (£200k) and the premoium is much lower £10 a month. I feel that's about right for me/us as i also have 6 months full pay and another 6 months half pay if sick and death in service cover for 3 x salary. I did find it quite challenging working out what i did need and which levels of cover were best. It's a very individual thing depending on your circumstances.

I'm a single parent so I have cover, because if I couldn’t earn then once my 6 months sick pay ended, I’d have nothing.

Having said that, these policies are not as wonderful as they say they are. My friend’s husband had critical illness cover. He was diagnosed with a malignant brain tumour. Because he was young and otherwise healthy, he lived for 5 years, during which time my friend couldn’t work due to looking after him. The policy refused to pay out, repeatedly, and my friend didn’t actually get the money till after he’d died. She has 4 kids and it was a real struggle for her during that time.

I wouldn’t bother. We had it and they refused our claim. Policy said something like unable to perform your job rather than any job - in the small print.

Took 9 years, financial ombudsman etc. They agreed DH couldn’t work because they way paying out on our waiver of contribution.

We were warned by our IFA against going for some of the cheaper policies - not worth the paper they are written on was his description. We went for L&G in the end. Not had to use them (thankfully) so no idea if worth the extra money but we had recommendations we trust.

I think the aim is to go with a reputable company. The actual quote you get depends on your circumstances of course.
I am also with L&G and only pay £15 a month for life insurance and critical illness of almost £250k.

The £150 a month quote sounds excessive to me personally. Do shop around OP.

We have it. It’s expensive due to family health history but given that very history it feels very likely I’ll get ill. At which point it will be needed. Yes it’s a boring spend, like buildings and contents insurance, but one of those “hope you never need it but glad you have it if you do need it” things.