INSURANCE - this is doing my head in, can someone help?

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Hi,

Would any of you have any idea what kind of premiums per month i should expect to pay if i wanted something like

an insurance that can pay out a lump sum -- let's say £500k in the event that i get seriously ill and can't work or if i die. I suppose i would like this insurance to be valid for say 20 years.

i tried going into scottish widows website etc but i am having to fill out all these forms and the terminology is doing my head in.....

just wanting to know how much this might cost me.

thanks!

They vary from company to company. I think you are looking for Life insurance with critical sickness cover. I really think you need to find an Independent Financial Advisor to help you with this.

It can vary hugely depending on what you go for...

You can get critical illness cover, which will cover you for a very specific list of illnesses - it will pay out a big chunk if you get one of the illnesses on the list, but it doesn't cover back injury and stress, the two most common reasons people can't work any more.

Secondly, there's income protection, which will pay out if you are unable to work because of ANY illness. There is a choice of deferred periods (i.e. if it only starts paying out after you have been off for a year, it is cheaper, if it is only after a month it is v expensive). it will continue to pay out until normal retirement age, rather than just giving you a lump sum. It is a much much better product in most (not all) circumstances than critical illness, but doesn't get considered because crit illness pays out a nice big lump sum and is much 'sexier'.

Finally, there's life insurance, and there are loads and loads and loads of different types, varying from investment based ones, that will give you a return at the end of the period while also giving you a degree of life cover, and ones that won't give you back anything, but will be cheaper and give you a good payout on death.

Best to speak to an IFA, as there's so much variation! Failing that, do some internet research and pick the one that's most important to you...