cheapest accidental death cover?

bs7

leaving aside all issues such as it worth it, anyone know the cheapest place to get insured against accidental death (and cover that extends to under 25s)?


NorwichUnion would seem to do it for £1.99 a month - http://www.norwichunion.com/accidental_death_benefit/

dunstonh

You mean you want to pay for it? Many things, such as current accounts, give it away.

For a couple of quid more a month, an under 25 could get much more cover and on full life protection and not just accidental. £7.50 gets a 23 year old over 100,000 for 25 years.

You take out protection to cover something. Also, there is never enough money to cover everything so you shoud cover what is most important. What do you need accidental life cover for?

bs7

What do you need accidental life cover for?

there's absolutely no reason for it at the moment other than just wanting it.

Suzz_2

I've got it with Goldfish card for £1.80 a month.  Think it's for £25K of cover.

Give some covers for accidents 'less severe' than death too - loss of a limb, eye, etc., though you'd get less pay out.

I've wondered whether its worth it and whether I can get it cheaper but I don't find it's very well advertised.  Far cheaper than critical illness cover (wouldn't touch it...) and I suppose accidents do happen...

dunstonh

I've wondered whether its worth it and whether I can get it cheaper but I don't find it's very well advertised. Far cheaper than critical illness cover (wouldn't touch it...) and I suppose accidents do happen...

So you would rather pay for something that is unlikely to happen yet not pay for something which is much more likely to happen?

Suzz_2

Hmmm.. don't know the statistics, though I'm sure someone selling critical illness cover would have some convincing and frightening figures to quote.

I did look in to it when taking out my mortgage and it was expesive ~£20+ a month. Accident cover costs far less, but, as I say I have my doubts on whether that's worth it.

At the end of the day, how much insurance is enough... sometimes I think you just have to deeal with whatever life may throw at you... :-/

lisyloo

At the end of the day, how much insurance is enough... sometimes I think you just have to deeal with whatever life may throw at you...  

My opinion is that it's impossible to insure everything so you have to work out what the risks are that will affect you worst of all in your situation.
For exmaple if you have 2 incomes and no kids and low outgoings then you may feel that redundancy insurance is not that important because you could cope on 1 income.

It is definitely dependent on your situation.

Another thing to consider is the likelyhood of each event.
The likelihood of dying in an accident or getting a critical illness are pretty small for a young person,
I would suggest that the chances of redunadnacy are a LOT higher.

Suzz_2

I agree Lisyloo. I suppose it's a question of the risk and also how much it costs to insure against it and how much cover it buys you.

Though redundancy is common, cover is expensive and pays out for only a limited time. If your essential outgoings are low and you have some savings that would last you for a few months, it's probably not worthwhile.

Everyone's situation is different; certainly these types of insurance are more important if your outgoings are high and certainly if you have dependents (I don't).

I was told incorrectly, when I took out a repayment mortgage that I had to take out life assurance. Only £5 per month, but I didn't need it.

I always think.. the harder they try to sell you a product, the more commision they are making and the less you probably need it..

lisyloo

I was told incorrectly, when I took out a repayment mortgage that I had to take out life assurance. Only £5 per month, but I didn't need it.

Well this is debateable.
I am assuming that you have a mortgage and that you would expect the sale of the house to cover the mortgage.

What happens if prices fall?.
The risk depends on your LTV but if you have a high loan to value ratio then there is a chance that the house sale won't cover the costs of the mortgage.

Will your beneficiaries be able to cover mortgage payment whilst the house is up for sale?

What if it takes 6 months? 9 months?
Do they have the cash to cover the payments in the meantime (probate can also take months - this is the process you have to go through with the inland revenue regarding iheritance tax).
Your folks won't be able to sell the house until probate is complete but the bank will expect interest to be paid on the mortgage.

If your beneficiaries are well off and are prepared to do this, then all well and good, but I'd hazard a guess that you haven't discussed it with them.

dunstonh

4 out 10 will be diagnosed with cancer at some point in their life. (macmillan cancer relief)

Cancer or heart disease will affect 1 in 2 people in the UKat some stage in ntheir lives (GE frankona Report).

The chances of a non smoking man aged 30 experiencing a serious illness before the age of 65 is almost double that of dying (munich report).

1 in 5 men die between age 20 and 65.

Scot Prov average payout on CI is £70,425 with an average age of 42. Average life of a policy before claiming was 35 months.

Cancer accounted for 55%, Heart attack 13%, stroke 5%, MS 4%, heart surgery 4%.

in 1998 there were just over 12000 accidental deaths this represents a fall of almost two-fifths since 1971.

On average in the UK, there are 620,000 deaths.

So 12000/620000 means that accidental deaths account for 1.93% of all deaths in the UK.

Population of UK is 59.360 million. 12,000/59,360,000 means that 0.02% will die from an accident.

Now do you see why accidental death insurance is regarded pretty poinless and given away so cheaply.

bs7

Now do you see why accidental death insurance is regarded pretty poinless and given away so cheaply.

but anyone know where to get it cheaper?

I'd rather be covered for the 0.02% risk than not.