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Original poster

Is critical illness cover worth taking out?

30 replies

ssd · 01/11/2006 14:43

We are really short on disposable income and have no life or critical illness cover for me or dh.
I know life cover is a must, but don't know about critical illness. We are with the TSB and will probably take the cover out with them.

Anyone vith any views around?

OP posts:

DelGirl · 01/11/2006 14:47

Yes, in short and imo.

If, heaven forbid, either of you (if you're both covered) were to have a critical illness, you're mortgage would be paid off. It would relieve some stress. You can also have cover in the event of your childrens illness.

DelGirl · 01/11/2006 14:48

tbh, depending on your current health, I don't think it's that expensive if you were going to go for 'term' life assurance.

DontBurnMeImJustATwiglett · 01/11/2006 14:49

well they exclude many illnesses so you have to read the small print .. it is also for a finite time so if you should get an illness that stops you working then it wouldn't cover you

Personally I think Life assurance is a must

You should, technically, have savings equal to 6 months salary anyway .. yeah right

nuttygirl · 07/11/2006 22:45

TBH whether it's worth it probably depends on how much it's going to cost you...and whether you can afford it. Don't just get a quote from TSB cos it's your bank. Try a few places - it doesn't really pay to be faithful to one place IYKWIM!!!

Lio · 07/11/2006 22:47

We thought yes - more so than the one where one of you dies (sorry so inarticulate, bed time).

firsttimemama · 08/11/2006 20:44

Yes IMO -I am a financial adviser and before DH and I had our little one we had Critical Illness policiies and no Life cover policies (covered at work through Death in Service benefits though). BTW you are actualy more likely to contract a critical ilness before 60 than die before 60. Roughly 1 in 3 people get a CI before 60 and if I remember correctly it's about 1 in 6 men die amd 1 in 8 women die before 60. HTH

firsttimemama · 09/11/2006 21:59

Sorry I should have have said "Statistically" you are more likely......... - didn't actully mean you personally ssd or anyone else for that matter! Sorry

ProfYaffle · 09/11/2006 22:02

Yes. Dh had a brain tumour removed a couple of years ago, the critical illness cover paid off our mortgage.

RubyBlueberry · 28/08/2009 19:26

So is it worth it? I know this is years later but am still concerned!
Does it pay off mortgage? Are you expected to die, is that why?

Itsjustafleshwound · 28/08/2009 19:32

Well - can't you choose the level of cover? IIRC, DH and I have a policy that covers our mortgage plus for the simple fact that although I am not a monetary contributor to the finances,it would paymy DH out for something to cover my 'job'??

I had a quote through our door the other day - it was about a tenner for full cover (using a 35+ YO woman as the example)

RubyBlueberry · 28/08/2009 19:44

This is what I've been quoted... is it any good?

Joint life cover including Terminal Illness Benefit
for £95,500 of Mortgage Protection over 25 years is £11 a month

Life Cover for me, inc Terminal Illness Benefit for £100,000 over 25 years is £7 a month. (I am self employed and contribute very little to household bills)

Critical Illness Cover for both of us is £46 a month reviewed every 5 years.

I am not totally convince I understand everything!

HeartAttackat38 · 28/08/2009 20:01

We have 2 life policies 1)to pay of the mortgage and 2)give an income in case one of us dies. We covered both of us because even though my earnings are very low, if anything happened to me then dh would have to either give up work to look after the children or find money for someone else to do it. We also have an endowment with critical illness cover from our last mortgage but when we moved house we took out a repayment mortgage (still kept the endowment going), but didn't take out CI cover as it was too expensive and cash was too tight.

Unfortunately last month I had a heart attack (i'm only 38)so we are now making a claim on the endowment but it's a fraction of our current mortgage. I can't work atm but fortunately dh is the main wage earner so it's not too drastic. If it had been him then things would've been alot harder.

Have you seen an independant financial advisor. They'll be able to provide you with the best quote for the cover you need. And decide what you want covered and check all the small print.

RubyBlueberry · 28/08/2009 20:33

Shite!! a heart attack at 38???
You poor girl, are you okay now?

HeartAttackat38 · 30/08/2009 16:30

I'm ok(ish) now. Still have to take things very easy and need alot of help with the dc's (3.11 and 18months) but making a good recovery. Was a bit of a though!

RubyBlueberry · 31/08/2009 20:03

I bet it was! Well I hope you have taken it easy and had a nice bank holiday weekend

ABetaDad · 31/08/2009 20:32

ssd - oneof the most effective and cheapest form of life cover you can get is Level Term Life Insurance. It does not pay out unless you die. It does not produce nay investment return or pay out any benefit after say 20 years. You get nothing unless you die and if you stop paying premiums you get nothing. It just pays out a specified sum if you die. I have it and would advise anyone who is thinking of life cover to get this form of life insurance. I got mine from Legal & General a few years ago.

You can ring them direct or apply online

There are variations on it incluing critical ilness and terminal illness cover. You can also specify a decreasing term cover that reduces the payout as you get older if it is say covering a repayment mortgage. This decreasing term insurance is the cheapest of all.

RubyBlueberry · 01/09/2009 10:31

ABD - at the risk of sounding thick - what's ssd mean? Thanks for info on Level term Insurance, have that sorted now, just thinking of criticall illness and if it'[s worth it (am almost convinced but £45 would be monthly booze allowance half a week's shopping)

RubyBlueberry · 01/09/2009 10:32

oh that didn't work! whoops!

ABetaDad · 01/09/2009 10:50

RubyBlueberry - sorry ssd refers to the OP (is that you wih a name change?). I got my asterisks in the wrong place that is all.

The product I am talking about is Level Term Insurance and is probably what you need if you can afford it, often you can bolt on critical illness cover at a small extra cost. I would just check to see how much Term Life cover with an add on critical illness cover you can get which is what I have with Legal & General.

My wife did claim on a smll critical illness policy she had when she had cancer a few years back. Even so, I do not think it is really worth buying ritical illness cover on its own without the normal Term Life cover. If you got killed by a car crossing the road, critcal illness cover would not pay out because it is not on the list of 'covered' illnesses. Whereas Term Life cover would.

MummyDoIt · 01/09/2009 10:57

Absolutely worth it. When DH was diagnosed with terminal cancer, it paid off our mortgage. Nothing compensates you for a tragedy like that but it certainly helps not having to worry about finances.

I took out a policy after his death which covers me if I'm ill. I would struggle to care for the DSs, do housework, etc if I were ill so I would use it to hire help. That policiy is with Unum and it's one specifically aimed at housewifes/SAHMs.

Speak to a good IFA (not necessarily one connected to your morgage lender). Mine has been wonderful and given us very sound advice over the years.

RubyBlueberry · 01/09/2009 11:53

ABD, no the orignal post was in 2006 I was just thread hunting for advice...
I think I will go see an IFA.
Thanks all!

UndomesticatedGoddess · 01/09/2009 18:22

We went with a company called bright grey and have both life and critical illness cover with them.

We chose them because they were the most flexible if our circumstances change and we can make amendments very easily.

We have separate policies as there is some issue with a joint one (can only claim once) - so do check that out. We are both insured for different amounts as the death / illness would have a different effect on income.

I feel better that I have it as I would hate to think of DH struggling if anything happened to me.

RubyBlueberry · 01/09/2009 18:36

Thanks UndomesticatedGoddess (like the nickname BTW)

OurLadyOfPerpetualSupper · 01/09/2009 18:44

Can I hijack and ask whether it would be worth having Critical or Long Term illness cover if you don't have a mortgage?

I'm an SAHM but my concern is that if I was incapacitated it would mean DH couldn't work - would like to cover against that eventuality.

UndomesticatedGoddess · 01/09/2009 19:02

OLoPS our policies are worth more than our mortgage. I suppose you might need a slightly different type of insurance - I'm certainly no expert. It wouldn't hurt being insured so you could pay other bills if anything happened to either of you though.

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