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Original poster

To ask how much you pay in critical illness cover

21 replies

Decormad38 · 16/03/2019 15:16

Seen a mortgage advisor today and she was a little dismissive of the critical illness cover we took out with our mortgage two years ago. She said next time we would discuss this but implied we needed to be paying alot more that £100 a month for us both. Husband 49. Im 52. I jokingly said well I don’t want to me stressing at paying critical illness cover so much that it makes me ill! Do you pay out significant amounts of money on this?

OP posts:
BatsAreCool · 16/03/2019 15:19

What you pay out in premiums surely depends on the level of cover you need and can afford?

I wouldn't go with what your mortgage advisors says tbh unless they are fully independent.

nrpmum · 16/03/2019 15:22

Ex mortgage advisor here. If your critical illness cover is not adequate you should look to review what you have. However it does depend on what you are intending to use a pay out for should you be in the unfortunate position to need to claim.

nrpmum · 16/03/2019 15:23

Pressed post too soon

As to whether you need CIC over income protection, or vice versa. I would always look at the most cost effective way of protecting yourselves.

Original poster
Decormad38 · 16/03/2019 15:25

We had cover enough to afford to pay out a years salary should we get sick. Then life cover to pay off mortgage if die. To actually take out critical illness cover that then pays your mortgage is another mortgage payment in itself!

OP posts:
ANiceLuxury · 16/03/2019 15:26

I pay £36 a month for critical illness cover for dh and I. It also covers children. Its with Aviva and it also pays out in death.

So for £36 a month we get 75k critical ilness cover for me and dh (not 75k each) and if we die it pays out 75k life insurance.

I also have an additional life insurance policy which is again a joint one which pays out 350k. I pay £68 for this, again with Aviva. It pays out once.

Original poster
Decormad38 · 16/03/2019 15:29

So @Aniceluxury does the 75k cover you loosing your salary for a year or two years? It sounds like you pay the same monthly payment but get better payout. We are also with Aviva.

OP posts:
BatsAreCool · 16/03/2019 15:31

If you only have enough for one years salary then as PP mentioned perhaps income protection instead might be a better option?

I have a lot more cover than that and no mortgage as for us critical illness is more to ensure we wouldn't need to work again if we couldn't.

ANiceLuxury · 16/03/2019 15:32

No there is no salary loss. It pays out set amounts depending on what is wrong with you.

ANiceLuxury · 16/03/2019 15:39

Sorry i was wrong there just looked at our policy and its not dependant on a certain amount of payout depending on whats wrong with you

Original poster
Decormad38 · 16/03/2019 15:44

She asked if I knew exactly what I would get paid out. Its two years ago I sorted this so had completely forgotten so she said she would remedy that. I said no I will forget again because I have a life!

OP posts:
pussinwellyboots · 16/03/2019 16:32

We chose not to get critical illness cover as both DH and I are in jobs where we get 6 months full pay and 6 months half pay but we do have life insurance to pay off the mortgage.

There are many examples where critical illness cover doesn't pay out that for some people it may be better to build up a savings buffer instead.

Crossfitgirl · 16/03/2019 16:40

We pay about £95 a month for 2 of us. Both in our thirties. This includes life insurance which would pay out our huge mortgage in case of death, critical illness cover for both of us which pays out about 60k if one of us gets cancer or something awful and can't earn or we need to move to accommodate disability or something, and also includes income protection for my husband if he's off work for more than 4 weeks.

We felt we needed to do this when we moved house and our mortgage is too much for just one of us to cover if the other died, and we also have a baby on the way so felt it was worth it to not have to think about selling the house or paying the bills whilst grieving or dealing with a critical illness.

However, in our old house one of us could easily afford the mortgage on our own and we weren't planning a family at that time so had no dependents, so we didn't have any cover at all.

If we had less money, we would have just gone for the life cover on its own which only came to maybe just less than 20 a month for both of us.

The critical illness bumped it up massively as its a lot more common so they get lots more claims I imagine. Depends what you want to cover. Go with what you can afford to pay, we had the option to reduce the payouts to make it cheaper if that helps. X

Crossfitgirl · 16/03/2019 16:42

The critical illness cover on its own came to maybe about 60 ish a month for both of us if that helps also. X

Original poster
Decormad38 · 16/03/2019 17:28

Thanks for the responses. It goves me a better idea of what happens.

OP posts:
nrpmum · 17/03/2019 07:18

If you're looking for cover for salary you'd be better off with income protection. Cheaper than CIC normally, pays out for lesser illnesses.

Coronapop · 17/03/2019 09:14

I never took out CI cover because there were so many exclusions that I concluded it wasn't worth it.

swingofthings · 17/03/2019 10:36

CIC with Aviva too, taken 15 years ago. Pay £23 a month for £105k cover, me only. No loss of earnings but don't really need this.

MaverickSnoopy · 17/03/2019 10:50

We have a joint life insurance policy that would pay off the mortgage and have £50k leftover. Policy costs £40/month. DH also has a work policy of 3x his salary lump sum. I don't because I work for a startup. DH has income protection for £35/month. I don't because I am about to resign and start my own business so will save a portion of my income each month and make separate provisions.

I think that adequate cover is the single most important bill that you can pay for. If obviously you are on the breadline and it's not possible then it's not possible, but where it is possible you should have the best that you can afford.

I have a friend who doesn't have it at all and says she really should get round to it...she doesn't place importance on it because she doesn't believe she'll need it. I read a thread on MN a while back where someone said they would just use savings and make provisions that way - fine if you can save enough.

Numptysod · 17/03/2019 12:09

33.00 for 50k

And 19 for 100k life
But if use critical I only get 50k on death

SwedishEdith · 17/03/2019 14:28

I have CIC from my first house. What I don't remember being explained to me was that at 20 years in, the cover would decrease or the premiums increase. I was asked to double my monthly premiums with no indication of what I'd be asked to pay in the following years. A quick look online suggested they could increase a lot. So check that out at the start.

TalkinPaece · 17/03/2019 15:38

Nil
never seen the point of it

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