Shocked at life ins/critical illness cover quote-any recommendations ?

[fakeblondie]

DH is 44 and i`m 40 with 4 x dc 17 15 7 and new baby.
Been quoted 200.00 a month region for above to pay out about 250000 if one of us were to die ect-

We owe 80,000 on mortgage and have 4 dependants so 250000 wouldnt go far but 200 per month is ridiculous !

Any suggestions most welcome x

The premium is calculated on age, medical history, weight, smoking habits and all kinds of other things. Shop around comparison sites with other insurers to see if this is typical and consider covering just for 'life' rather than 'critical illness' which can be both expensive and problematic.

Yep, agree with Chil1234 - think hard about the CI. It only pays out for a very tightly worded set of conditions. The list is long so it sounds comprehensive, but it isn't.

You can also cut costs by taking life insurance that pays out less as you get closer to the end of the term (i.e. you would need less payout if one of you were to die in 15 years time than if one of you were to die soon).

I'm not sure you are buying the right product.

CI is very expensive. Also life insurance which pays out any benefit other than death is expensive. The expensive policies are recommended by brokers who get more commission.

The cheapest type of insurance is Term Life Assurance. It pays out only if one of you dies. Thats it. No investment payoff, no CI. It is the cheapest insurane you can buy.

I pay about £900 a year for as long as I like and will never go up. I took it out when I was 40 and pays multiples of what you will get. I rang Legal & General and bought mine without a broker.

Look on moneysavingexpert for links. I have term assurance for 25 years (so will only pay out if I die before about age 59). It is about 1/10 of the price of yours for greater cover (but I was younger than you are when I took it out).

'The expensive policies are recommended by brokers who get more commission'
That is what it is all about Beta eh? Never mind those who give good advice for the sake of it.
Once you get above 40 years of age, life and CIC gets much more expensive. After all the odds of paying out are much more likely.

But the point being BigGitDad, that you can get insurance to cover every single aspect of your life and brokers are incentivised to sell you that insurance through the commission system. They're sales people. Some, in the process of giving 'good advice' will make it seem as though you are taking an enormous risk, bordering on irresponsibility, not to take out insurance for critical illness or redundancy etc. I'm sure there are brokers that take 'no thanks' for an answer, but others (and it sounds as though you're in the business) really do pile on the emotional pressure.

My life insurance is £16 a month for 200k . That was with an enhancement for being high risk, although dh is high risk for attending yearly appts due to arthritis

No idea on critical illness

Using a software program available to IFAs for comparison, your quote for £200 pm is actually quite good, but that depends on how long you wanted the plan to run for (assumed 20 years).

As chil says, the insurer takes all sorts of things in to account. As well as the things already mentioned, things like occupation, risky hobbies and the medical history of your immediate family can also affect how much you have to pay.

One consideration that can make quite a difference is if one of you smokes and the other doesn't. In which case, it would likely be a cheaper option to have separate policies. Similarly, if one of you might present a much higher risk to the insurer than the other, for example parents with problematic medical history, look at separate policies.

Critical illness cover will always be more expensive than simple life assurance because there is a much higher chance of the insurer having to pay out.