Critical Illness Cover

mealmond

I know nobody can give me a definitive answer, but I just wanted to know what peoples thoughts were.

I have a Crital Illness Policy, and a second policy that covers me if I were to be ill for more than tweleve months. I also have unemployement insurance but I am happy with that.

Although I manage my finances ok, like most people in this day and age, I have been looking at my expenses. Between the two policies, I am paying out about £70 per month, not small change.

Over a year, this is a lot of money and I am now considering stopping these policys.

There is nothing in these policy's for me if I do not make a claim and over the life of the mortgage that would be a large some of money.

I know you cannot predict illness, but two factors are making me think

(1) I have read a lot of negative things about this kind of policy, people becoming ill and then finding they are not covered.

(2) Touch wood, as a whole the family is healthy and there is not history of major illness.

I know it would be a gamble in the end, but I could make better use of the money, to be honest.

What are people's thoughts on Critical Insurance??



Martin

mrsb2100_2

I have to sat, speaking from personal experience, it's worth keeping up critical illness. My reasons are my husband had a heart attack at 35. Although overweight and a smoker, we thought he was relatively healthy but evidently not! We were lucky as it was what they classed as a 'mild' heart attack - myocardial infarction I think was the medical term.

Because he satisfied all the requirements in that the Doctors called it a myocardial infarction and he had an angiogram (the camera in the artery), we were paid out relatively quickly.

However, I'm sure there are cheaper policies out there and maybe there are some cost cutting measure you can take from these.

Mind you, we cant get critical illness cover now at any reasonable rate!

_Andy_

mealmond wrote: »

(1) I have read a lot of negative things about this kind of policy, people becoming ill and then finding they are not covered.

CI actually has a very good payout rate. Most common reasons for claims being declined is people trying to claim for things that aren't covered, or failed to disclose information when they took the policy up.

(2) Touch wood, as a whole the family is healthy and there is not history of major illness.

Exactly why you should make sure you're covered now. My dad was 'perfectly healthy' three years ago when he got diagnosed with MND and died two years later.

I appreciate it's a reasonable outgoing but the cover it provides if something did happen is well worth it.

dunstonh

(1) I have read a lot of negative things about this kind of policy, people becoming ill and then finding they are not covered.

There is an awful lot of misinformation out there on CI. Some of it was correct 5 years ago but things are different now. CI pays out on diagnosis of a range of specified critical illnesses. If the illness isnt listed then it wont pay out. About 10% of claims are rejected due to illness not being covered. 5% not paid out for non disclosure and 85% paid out successfully.

The illnesses not covered would be captured by the PHI policy you have.

What are people's thoughts on Critical Insurance??

Statistically, you are more likely to claim on it than the unemployment cover. Its not far behind life assurance in the odds of making a claim.

Professionally, I have had more claims go through on CI then life assurance despite life assurance being taken out far more frequently. My youngest claiment on CI was 26 and had one last year that was 30. No history or family issues. Just totally out of the blue.

Englishbloke

It would go for it...

I have recently made a claim at 31, cancer. Didn't see it coming, no history or anything, it was suddenly there and within a day of being diagnosed I was in having an operation.

I am in the middle of a claim now, don't know if they will pay out or not, can't think of a reason not to, my condition is listed and I can't think of any grounds for non disclosure. Just have to wait and see if I didn't mention something I completely forgot about!?

Pretty stressful wait but I would have been even more stressed if I hadn't even bothered taking the policy! My policy was only 30GBP/month with Scot Prov so worth taking when you are young.

quietheart

KEEP IT!
I was fit and healthy 39 yr old and suddenly had a stroke in June. I'm currently going through a claim.
Try other budget cuts, get cheaper car/home insurance, don't cut back on this one.

onlymybestguess

You have got to try and determine if the 70squid a month you would save would outway the potential return you would receive should you need to claim.

Ask yourself if you need the level of cover you have. Consider what you would receive in benefits from work / benefits should the worst arise.

I take your your point about you being in good health etc, but the cover is a !!!!!! to hold of should your health quickly change.

I wouldnt read too much into some of scare stories about policies not paying out. Make sure you read your policy conditions, and know exactly what to expect (anything not in them wont be covered) and make sure you told your insurer every thing (not just what you think they need to know) with regards to your health on the application form, that way you can relax about the claim being declined when you really need it.

mealmond

Hi

Thanks for the new replies, and I hope those that have mentioned their health problems get better soon.

Oddly enough, I had forgotten I had posted this question.

I had left things as they were until yesterday when I got a letter from my L & G about my long term protection, that is to increase to over £32 in Feb 09, raising by the rate of inflation.

I have had a quick look on line and have found a policy from Liverpool Victoria, that appears to cover two of my insurance's in one. The normal critical illness cover, along with the long term cover but at under £25 per month, more than half the price of what I will be paying in Feb 09.

Another factor is that in Feb 09, I will be classed as a non smoker as it will have been twelve months since stopping the eveil weed, :j , and the policy will be even cheaper, lets hope the price remains the same, about £18.50 a month. I'm now not doing anything before then.

I know it is one of these things in life you pay for and hope you never use, but I still feel, ignorning the unemployment insurance at £14,95, per month, that having two insurance policys for critical illness, one up to twleve months and one for after the twelve month period is not the cheapest way of doing it.

I suppose the main problem is that I prefer to do things for myself, rather than see somebody and get the feeling I am being sold something that I do not understand.

The Liverpool Victoria deal I have seen seems to cover both jobs and runs until I retire and the cover seems to be what I need.

If anybody reads this and has a similar policy with them, I would like to hear what their thoughts are.



Martin

dunstonh

Just a quick warning, my mortgage adviser told me the other day that LVs service is awful at the moment.

Also, the cost difference could be that LVs is reviewable and not guaranteed.

I suppose the main problem is that I prefer to do things for myself, rather than see somebody and get the feeling I am being sold something that I do not understand.

If you see a sales rep you will be sold to. If you see an adviser you will not. However, an adviser is still required to make you are aware of your full need.

Englishbloke

REMEMBER. The cheapest policy isn't always the best! If it doesn't pay out you will be wishing you paid the extra few quid every month. My policy has now paid out (thank goodness) and I am very glad I went for a more expensive option (Scot Prov).

Also make sure you mention EVERYTHING on your application forms, especially the fact that you used to smoke even if technically you are now a non smoker. Non-disclosure is a big worry when you actually make a claim, I am VERY glad I was thorough!