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Original poster

Life insurance, critical illness cover ... or not?

34 replies

Disenchanted3 · 28/04/2009 19:31

Do you have it? Is it worth getting?

What exactly is it?

Cheers x

OP posts:
Wheelybug · 28/04/2009 19:35

We have it and pay quite a lot for it. However, my DH has been quite ill recenly to the extent he might not have been able (and in fact is still a possibility) to carry on with his job. Having looked into our cover we are not sure if they would pay out if nec due to the nature of the illness. So, in a nutshell, am not convinced it kis worth the money.

I think life insurance is probably worth it but not sure about critical illness although they often come together

Original poster
Disenchanted3 · 28/04/2009 19:39

Yes Iwas thinking the same.

Thankyou x

OP posts:
thisisyesterday · 28/04/2009 19:43

i think it can be worth it, but you need to really, really read the small print and make sure you're getting the most comprehensive cover you can.

VinoEsmeralda · 28/04/2009 19:50

read the small prints, loads of different policies out there. We are with Zurich and life insurance is peanuts per month compared to critical illness but we took both.(well I have critical illness and life insurance and DH only life insurance)

onlyjoking9329 · 28/04/2009 19:55

read the small print as sometimes it only covers you for a year,also there are lots of things it wont cover you for. i wished i had read the small print.
make sure you have life insurance and consider upgrading it, we took ours out 15 years ago and when my Dh died last year it wasnt worth a lot.

Original poster
Disenchanted3 · 28/04/2009 19:58

Hi OJ, haven't seen you in ages.

Thankyou for the advice, will look into it carefully.

Hope you are well x

OP posts:
VinoEsmeralda · 28/04/2009 19:58

Agree OJ, we thought DH was insured but it turned out to only be when he would have been a passenger in a car! Read the policy shortly after DH came of ITU and then went to see a finacial advisor who advised us with Zurich and it is a good policy (well as far as a policy will go)

expatinscotland · 28/04/2009 19:59

We don't have either. Not worth getting for us, really, because we have no assets at all and DH smokes.

onlyjoking9329 · 28/04/2009 20:00

it will be time well spent looking at it all,i know you think you will never need it.
have been away with the kids for 3 weeks to avoid the building works. we are doing ok, just had elliots birthday.

Original poster
Disenchanted3 · 28/04/2009 20:21

We have nothing either Expat, isn't that the point though. So if one of us dies it will generate something for the one left behind and the kids?

OP posts:
expatinscotland · 28/04/2009 21:05

If it covers you, I suppose. But we don't have the extra money for it every month. It would be a problem for me because I had cervical dysplasia a few years ago and, as I stated before, DH smokes.

BigGitNotYourAverageBlokeDad · 28/04/2009 22:57

You are four times more likely to get a critical illness than you are to die. It does make sense to get cover in my opinion as it buys peace of mind. But it does depend on the cost as it can be expensive.
If you are young I would look at it if you are 30 plus then it could be expensive.

Numberfour · 29/04/2009 05:47

I am 42 and have been thinking about this for AGES. Thanks for brining the topic up, Disenchanted. It has reminded me to get sorted.

beep · 29/04/2009 07:23

We had it on our endowment policy for the mortgage and it paid out last year when I was diagnosed with breast cancer.

MrsGokWan · 29/04/2009 07:52

I have just been thinking about this as DH has just got promotion at work and we will have a bit extra in his pay packet each month. Where do I start looking. Should we both get both. Aaaargh!! where do I start.

Northernlurker · 29/04/2009 08:00

WE have a small amount of critical illness on part of the mortgage. It is simply too expensive to cover the whole lot and as dh and I are (ahem) well covered they won't cover us anyway! We have some life insurance written in trust for the children but probably not enough! Our pension plans also pay out a death in service benefit =- don't forget to check that because if you get one of those it reduces the amount of life insurance you need to pay for.

MrsGokWan · 29/04/2009 10:34

Thanks for that NL.

Is there anyone I should talk to to give me advice on whats what? I keep getting sent junk mail and stuff via email and I am confused.

DH has a high incidence of cancer in his family and it would be good if we were covered.

PestoSunshineMonster · 29/04/2009 10:36

You need to speak to a Financial Advisor about what it is exactly you need as there are so many different life products out there. It is a good idea to take out cover whilst you are young though, as premiums are cheaper.

BigGitNotYourAverageBlokeDad · 29/04/2009 11:29

They will ask for previous medical history and you will be asked to disclose various cancers that have existed in the family. For example if you have had bowel cancer in the family (Mum, dad, brother or sisters) that can double the premium as the heriditary chances of you getting it are very high.
Also look at permanent health insurance. That is critical illness cover but it pays out an income instead of a lump sum. It is designed to cover a loss of income in the event of long term illness. Usually you have to wait six months or maybe less if you choose before you claim but it will pay regular income until your chosen date usually aged 60 or 65.

BigGitNotYourAverageBlokeDad · 29/04/2009 11:31

Also bear in mind that cheaper is not always better when it comes to critical illness as if you pay less the chances are the cover will be less.
Usually Legal and General, Friends Provident and Scottish Provident are pretty sound.

MrsGokWan · 29/04/2009 11:31

I was just worried that they would have their favourite products and push those even if they weren't quite suitable. Will have a look in the local directory and get an appointment.

DH is 33, I'm 43 and we have 3 DC. We don't own our house, we rent.

Hmm! need to sort out wills as well me thinks, where do I go to sort that?

BigGitNotYourAverageBlokeDad · 29/04/2009 11:32

Oops last thing with permanent health insurance they will only cover you up to a maximum of 60% approx of your salary. That is so you have an incentive to return to work if need be!
If you are a housewife there is a limit which I cannot remember at present but will find out whne I am at the office.

BigGitNotYourAverageBlokeDad · 29/04/2009 11:36

Plenty of solicitors do wills or there are will writers about it depends on how complicated you want the will to be.
Do you know anyone who can refer an IFA to you. Speak to a couple over the phone and get a feel for them. (If you are lucky!!) Most IFA's should not charge a fee for a chat nor should they if you are taking out life cover unless they are rebating the commission back to you.

MrsGokWan · 29/04/2009 11:44

Thanks for all the information, it's been really helpful. Think I will put a side a day next week to make some calls.

wombleprincess · 29/04/2009 18:13

perhaps some questions to think ab out

when you die, do you want a lump sum to go to your spouse/children? if so, you should get life assurance

If you get a very serious illness, which may or may not be cureable, do you want a lump sum? if so you should get critical illness insurance

if you get ill and cannot work, do you want money on a monthly basis to cover you until you go back to work or until such time as your pension may kick in? then you need income protection, also known as permanent health insurance (nb you can get more than 60%)

with any of these it is up to you to determing the level of cover, ie percentage of income, mortgage etc. anything is technically insurable... but at a cost!

also you may want to check what your work (if you do work) covers you for, many people have a death in service benefit.

it is a good idea to get and IFA to help you with this if you are starting out but it is not a substitute for keeping yourself up to date!