Critical Illness Cover

OshayAway

dunstonh wrote:

Egg is reviewable premiums as well which is basically a no no when doing CI cover.

Why do you say that?

DogBreath_3

I work for a Life company - would definately recommend comparing the cost of buying Life+Accelrated CI combined with Stand Alone CI - The resons why the prices are not that different is as follows:
1. Tax on Life companies is less if you bundle the contract in with the Life element.
2. Costs - Costs and commission can make up around 30% of the total premium, the costs are not significantly different bewteen CI only and Life + ACI as they mainly relate to underwriting the CI element.
3. Risk - People buying CI only are more likely to have a known condition that they are buying specific cover for (some of which get rhough underwriting) - and therefore the CI Claims experience is worse on these contracts than for the Life + CI contracts - this is passed onto the premiums so the risk element of the premium costs more.

dunstonh

OshayAway wrote:

Why do you say that?

Reviewable premiums allow egg to alter the premiums at various dates of the policy. Guaranteed premiums do not allow the insurer to alter premiums.

With guaranteed policies currently pricing with very little difference, there is no reason to go reviewable and face a price hike in the future.

MoJo

DogBreath wrote:

I work for a Life company - would definately recommend comparing the cost of buying Life+Accelrated CI combined with Stand Alone CI - The resons why the prices are not that different is as follows:
1. Tax on Life companies is less if you bundle the contract in with the Life element.
2. Costs - Costs and commission can make up around 30% of the total premium, the costs are not significantly different bewteen CI only and Life + ACI as they mainly relate to underwriting the CI element.
3. Risk - People buying CI only are more likely to have a known condition that they are buying specific cover for (some of which get rhough underwriting) - and therefore the CI Claims experience is worse on these contracts than for the Life + CI contracts - this is passed onto the premiums so the risk element of the premium costs more.

Good point for others but I simply don't need Life Cover.

jasonking

There is not a great deal of demand for stand alone CI cover, hence there are not as many providers in this market, and those that are tend to be not as competitive as they could be. Also generally only reviewable premiums are available so you have to accept a risk that premiums will rise in the future.

As life cover combined with CI is a much more popular product, it is a more competitive market which means you can get cheaper life/ci cover that you can standalone ci cover...an anomaly. You can also get guaranteed premiums so you know where you stand in the future.

You should also make sure you compare the CI definitions as they do vary, also make sure they are full definitions in accordance witH ABI guidelines.

You will probably have more luck getting the quotes you want from a broker rather than the companies you have already tried, you should also take the trouble to get some advice at some stage as the definitions available can vary greatly

IanDC_2

Hi all, just a quick post, if you take out any term policy such as CI please insist the Ins company obtain a Doctors report, and ALWAYS get a copy of the proposal form when its completed, I didn`t and will regret for life, the Doctors report is a wepon of mass distruction in the event of a claim - trust me.

village_life

seems very sensible advice - can i ask why? ive heard horror stories of such insurances, but not too sure how often they happen

dunstonh

village_life wrote:

seems very sensible advice - can i ask why? ive heard horror stories of such insurances, but not too sure how often they happen

Not at all often really. Many companies now publish their failed claim rates.

Like anything the media focus on bad news stories and not good news.

IanDC_2

Hello Village_life, sure I can tell you my experience, dispite me giving approval for Ins Comp to check my medical records, they have a policy of not requesting medical reports, unless a medical condition is mentioned or the sum is high, in my experience over £150,000. In addition they checked my medical records after I had claimed and retrospectivly reviewed my application then VOID` my policy, for non-dissclosure. Please cover all your medical conditions, if you fill out any medical details GET A COPY, my experience went back over 10 years.I would mention I am still persuing my claim, good luck, Ian.

village_life

so did you not disclose something during your application....

i dont really understand... you filled in an application, they checked your medical records, you made a claim and they made your claim void!????

How can they get away with that!?