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  • FIRST POST
    • cosmost
    • By cosmost 15th Mar 17, 10:51 AM
    • 4Posts
    • 0Thanks
    cosmost
    Life Assurance / critical illness
    • #1
    • 15th Mar 17, 10:51 AM
    Life Assurance / critical illness 15th Mar 17 at 10:51 AM
    Hi,
    I brought my first home back in the early 90's, I was single then, but assumed things would change (they didn't!) . When I purchased the house, I was advised to take out term assurance and critical illness cover, which I did and have been paying into ever since. My financial position changed somewhat recently and I was looking at ways to save money, so I'm looking at getting rid of this, although I did think maybe the critical illness cover may still be appropriate?
    However, having read a couple of articles on here, I'm wondering if I should ever have been advised to take this policy out at all?
    If it was poor advice, is there anything I can do about it now, or is it too late?
    Is critical illness cover worth it?
    Many thanks
    Rebecca
Page 1
    • dunstonh
    • By dunstonh 15th Mar 17, 11:02 AM
    • 87,729 Posts
    • 52,970 Thanks
    dunstonh
    • #2
    • 15th Mar 17, 11:02 AM
    • #2
    • 15th Mar 17, 11:02 AM
    When I purchased the house, I was advised to take out term assurance and critical illness cover, which I did and have been paying into ever since.
    Good advice and one that most people follow.

    However, having read a couple of articles on here, I'm wondering if I should ever have been advised to take this policy out at all?
    What makes you think that?

    Is critical illness cover worth it?
    Most providers have a payout rate on claims in excess of 90%. It pays out more frequently than life assurance. It has certain limitations and maybe PHI would be a better choice for those on a limited budget but there is absolutely nothing wrong with CIC. I have seen more claims on CIC than any other type of insurance.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Chris Pollard
    • By Chris Pollard 15th Mar 17, 11:10 AM
    • 52 Posts
    • 22 Thanks
    Chris Pollard
    • #3
    • 15th Mar 17, 11:10 AM
    • #3
    • 15th Mar 17, 11:10 AM
    Cosmost, if you look at many of the other threads, you will see those who have found Critical Illness (CI) to have been very valuable. you were well advised previously, and sensible to heed that advice as so many don't. As Dunstonh says, it might be that a policy that pays you if you are unable to work (and earn) is worth exploring if this helps with your budget, but I'd be careful before cancelling and being uninsured. We never know what might happen in life, and CI payments helps thousands of people at a real time of need.
    • cosmost
    • By cosmost 15th Mar 17, 1:53 PM
    • 4 Posts
    • 0 Thanks
    cosmost
    • #4
    • 15th Mar 17, 1:53 PM
    • #4
    • 15th Mar 17, 1:53 PM
    Thank you both for your advice. That is good to know.
    As i don;t have dependants, i just want cover for Critical illness in future, or to make a payment if I am unable to work. I am currently a supply teacher, so my work is variable, are there companies that cover this type of thing, as my current provider says there has to be term assurance with it. My current policy stops near the end of this year, so I'm looking dos ee what else I need to cover myself. Thank you
    • Nearlyold
    • By Nearlyold 15th Mar 17, 6:43 PM
    • 846 Posts
    • 677 Thanks
    Nearlyold
    • #5
    • 15th Mar 17, 6:43 PM
    • #5
    • 15th Mar 17, 6:43 PM
    Not exactly sure what type of cover you are looking for, do you want a lump sum if you are diagnosed with a Critical Illness or do you want an long term income if you are unable to work due to ill health which would be covered by permanent health insurance

    I wouldn't bother looking for CI cover without life cover if that's what you are thinking, the life cover usually costs pennies extra (because most of the causes of premature death are down to a Critical Illness anyway - which would have already been paid out for on diagnosis)
    Last edited by Nearlyold; 15-03-2017 at 6:46 PM.
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