Life Assuarance/critical illness

smiffy2801

Hi

I am looking into whether or not it would be cheaper to change our life cover. We currently have level term death and critical illness cover. I have been reading the info sheets on the main site and it says that it may be cheaper to have death cover and income protection (we haven't got this). Anyway my question is critical illness is meant to pay out the sum assured so would pay off my mortgage but income protection only pays for 12 months. How can this be of benefit if you have a long term illness and cannot return to work? Am thinking it best to stick with critical illness cover?

Thanks

dunstonh

nyway my question is critical illness is meant to pay out the sum assured so would pay off my mortgage but income protection only pays for 12 months. How can this be of benefit if you have a long term illness and cannot return to work? Am thinking it best to stick with critical illness cover?

Critical illness pays a lump sum on diagnosis of range of critical illnesses. Permanent Health Insurance (to give proper income protection its right name) will pay out on sickness but in the form of an income.

There is a little overlap there but they are different things.

but income protection only pays for 12 months.

Only if you buy a budget version. I'm afraid Martin's article on income protection is not very good and really could do with an update.