Critical illness cover (merged)

dunstonh

I haven't got the information to hand as I never kept a copy of the letter stating the change in the conditions covered. They were not policies I sold and had no reason to. However, these were old Black Horse Life policies, now under the Scot Widows brand and started around 1994/5 time. The policies themselves are no longer in force. So, they were not "pure" Scot Widows policies. So although that may apply to Scot widows now, it may not have applied to legacy business from this particular legacy provider. Scot widows also have a history of offering products of the same name but with different terms on their different distribution channels. Although 94/95 time is long before SW were involved with Lloyds Bank.

The information i read through was the typical pile of papers you get given by someone who asks you to look at their policies. I only remember that bit because the terms changed when I, like yourself, only thought it was rates that were reviewable. It could have been a contract event that allowed a change. I really didn't dwell on it. I just recall the change in premium and some terms & conditions being noted.

I have checked NU, L&G and SW current offerings and these are certainly only rate reviewable.

AMIOUS14

Hi all,,
I am 50yrs of age and new to this forum.
About 2 years ago I changed my mortgage on advise from my financial advisor-he recommended I take out critical illness insurance -- I did and was paying £49 per month to `Bright Grey`.
Last year I was diagnosed with CML (Chronic Myloed Leukemia) and after haveing treatment I am told that I will have it for life but it is fully under control with drugs. I am now back in my fulltime job and able to live a near normal life. I was advised to fill in a claim form and today I have been told that they are to pay my claim (£60,000) which is my mortgage loan.
I have been reading the other threads on here about paying off your mortgage but I am still in a `fix` -- do I pay off my mortgage in total (£60,000) or stick the cash in an account and use the monthly interest to pay some of the monthly mortgage fee (£451). My mortgage has 18yrs to run.
Hope this is of interest,

blackcatg

Hi Newbie at posting so forgive any errors.
I have critical illness policy with Legal & General & they are paying my mortgage for me at present after the initial struggle, I have several long term health problems & my work is in the process of laying me off. The main question I have is can I remortgage or am I tied to this original mortgage until L&G stop paying out. The CIP was bought with MPI when I took out this mortgage in 2004 from the same broker. They won't pay off the mortgage completely because they say my illnesses are not bad enough for this, (ME, Fibromyalgia, Thyroid, Depression...)
Any help would be appreciated

dunstonh

blackcatg wrote: »

Hi Newbie at posting so forgive any errors.
I have critical illness policy with Legal & General & they are paying my mortgage for me at present after the initial struggle, I have several long term health problems & my work is in the process of laying me off. The main question I have is can I remortgage or am I tied to this original mortgage until L&G stop paying out. The CIP was bought with MPI when I took out this mortgage in 2004 from the same broker. They won't pay off the mortgage completely because they say my illnesses are not bad enough for this, (ME, Fibromyalgia, Thyroid, Depression...)
Any help would be appreciated

Critical illness policies pay out a lump sum. It sounds like you have a PHI policy. Wh

blackcatg

dunstonh wrote: »

Critical illness policies pay out a lump sum. It sounds like you have a PHI policy. Wh

sorry dunstonh lost the rest of your answer? is a PHI much different & am i still tied to my original mortgage until they (L&G) stop paying?
I have critical illness as well I got both since I was the only one able to work my dh has been ill for the last 15 years

dunstonh

I dont know what happened to the rest of my post. Gremlins!!!

Critical illness pays out 100% of the sum assured or nothing. It pays it as a lump sum. So, the way you describe an income suggests its not critical illness cover but Permanent health insurance or mortgage payment protection insurance.

I cant answer your question on the re-mortgage front as that is best asked of a mortgage adviser. You may want to repost your question in the mortgage section where all the mortgage advisers hang out

Quassi75

I am looking for illness cover in case I ever become really sick, and am unable to go to work and pay the rent and look after my partner. What is the best company to go for? I already have life insuarance with Direct Line, but would need illness cover, even if it's a broken leg, and unable to return to work for shorter periods of time.

Thanks

dunstonh

I am looking for illness cover in case I ever become really sick, and am unable to go to work and pay the rent and look after my partner.

It sounds like you want permanent health insurance rather than critical illness cover (or a bit of both).

What is the best company to go for?

No one best company. Different providers offer different levels of cover and some of the cheapest plans are complete and utter rubbish whilst some of the most expensive cover you for far more than the standard plans. It really depends on what you are after.

but would need illness cover, even if it's a broken leg, and unable to return to work for shorter periods of time.

Usually quite expensive to get cover that kicks in very early on. It depends on your occupation. Remember not to make sure the deferment period matches the sickness benefits from an employer. A common error by those doing DIY is to take out budget payment protection/income protection plans with a 30 day deferment even though they may get sickness benefits for upto 6 months or even a year. If that is the case, the payment protections will not pay out as you cannot have more than 75% of your net income paid and if you are getting 100% from work, the insurance policy is a waste of money.

Quassi75

My job will only pay 1 week sickness and thenn it goes to SSP. Which is a rubbish payment..

welshmule

Son has just gone self employed - needs insurance to be covered for any sickness or worse still injury(plays a lot of football):eek: - what sort of cover should he be looking for - any recommendations? Thanks