Should i keep my term assurance / critical illness cover?

Electrobag

6 years ago i was convinced by a mortgage advisor to take out 'Term Assurance with Critical Illness cover'. I pay 27.04 per month and the cover is 115000. im trying to reduce my outgoings and this is just under 2k i have given them. this seems to me to be a good one to get rid of. would anyone advise against this (other than the fact i would be jinxing myself become seriously ill).

dunstonh

this seems to me to be a good one to get rid of.

It is if you dont have a claimable event but it isnt if you do.

If you are trying to save money now, just think how much you will have to cut back on if you do have a claimable event but no policy in place.

koexelek

Same as with all insurances, if you go the whole term without claiming, it will have seemed like a waste of money.

If you get cancer or something like that, it would be a seen as a good investment.

I'm hoping all my insurances will end up being a waste of money... but I won't run the risk of not having them, in case I do have to claim

itsmesasin

I trust that most people get a patient "mot" these days. Taking on board both risk and saving. I would consider having a check up. If all is okay I would then cancel policy and if needed take this out again later then I would. However no one can predict events. I should imagine that most people are more at risk with getting injured rather that critical illness. There again you could have a heart attack worrying about should I? only you can decide, check your family history, if okay, then save some money.

the-chauffeur_2

You won't jinx yourself by cancelling a policy (although I know that you mean). Before you charge off and cancel anything, think very carefully about what you bought the insurance for in the first place. At the same time, it sounds like now would be a good time to review your financial situation both as it stands now and with a view to the future.

If you are single, have some assets (like a house) that could be used to repay any debts and you have no dependants, you may well find that there's no point in having term assurance on its own. In contrast, if your situation is any more complicated than that, and/or you have no other forms of insurance, you might want to think twice about cancelling. Equally, bear in mind that if by some horrible twist of fate you suffer from a critical illness, you may find that your lifestyle needs to change. Give some thought to worst case scenarios and have a think about how you would be able to afford alterations to property, vehicles and so on if you, say, lost the use of your legs.

At the same time, insurance will become more expensive the older you get - and if you have any illnesses between the cancellation of your existing plan and the start of a new one, you might find cover harder to come by. No matter what you do, you'll be taking a gamble - either on getting some form of benefit from the plan, or paying premiums that you don't see any benefit from. In that situation, the best thing you can do is make the most informed decision you can - and it's almost certainly in your best interests to have a word with an independent financial advisor before moving forward.

HTH

vegankris

IMHO, you should definitely keep it just in case anything does happen. The last thing you need if you become ill is to have added stress worrying about money. For me the peace of mind is worth the money.

As the-chauffeur has wisely pointed out, these policies increase in price with age or if you discover any new conditions in the meantime.

Have you tried shopping around to see if you can buy it cheaper elsewhere?

minimike2

Sounds like a decent premium for the level of cover. It will only get more expensive the older you get.

Im not exactly flush at the moment, but between myself and the missus we have over £100 quids worth of insurance each month that we have never used, and hope to God we never will, but even whilst things are tight I will not cancel them.....

Why dont you look at saving in other areas.

Sky TV?
Gym?
Lotto Subscription?

Change phone / broadband / utility providers if you arent already on the cheapest?

You might not have all of the above, but I bet you have some and could easily make £27 a month savings from chaning or cancelling some of it.

You might save £27 a month for a year....but imagine the cost of NOT having it if you did have a serious illness.

With the way things are at the moment, now is the time to be taking MORE insurance, not ditching existing policies.

_Andy_

itsmesasin wrote: »

I would consider having a check up. If all is okay I would then cancel policy and if needed take this out again later then I would. .

With respect, that approach is ridiculous and dangerous. By the time you 'need' to take insurance out, it won't cover you.
Also, just because you're apparently healthy, doesn't mean you will be the next day/week/month.