recommend life/critical illness cover

glittermonster

can anyone recommend places to try for life and critical illness cover for mortgage purposes?

I'm 30 in good health non smoker and have cover for a £110k mortgage and its costing me £50.50 a month with Halifax.

I've taken unemployment cover off as that was usless as I work 2 parttime jobs - so highly unlikely I would ever use it.

This is my first mortgage and it's just me i'm covering.

crazybass

I use Scottish Widows and pay £22.60 for £95,000 I should really look to see if can get a better deal as it's been 7 years I have had with them now.

hillcats

Yep very expensive, I have:
Life, Critical Illness & TPD cover with Friends Provident for £22.48 pcm covering 130k decreasing term.

TPD = Total Permanent Disability - If for any reason I cant do my own specified job it will pay out.

dunstonh

Banks are the most expensive distribution channel. Even if they use a known insurance company. i.e. Scottish Widows via an IFA is cheaper than Scottish widows via LloydsTSB.

Critical illness is not standard across the board. So, its not just premium you need to look at. Plus, reviewable and guaranteed premiums come into play. Bank products tend to be reviewable. Most providers offer a guaranteed premium or reviewable one although not all distribution channels will have both versions available.

monks28

hillcats wrote: »

Yep very expensive, I have:
Life, Critical Illness & TPD cover with Friends Provident for £22.48 pcm covering 130k decreasing term.

TPD = Total Permanent Disability - If for any reason I cant do my own specified job it will pay out.

TPD - wont pay out because you cant do your job - it is linked to "working tasks" set by the insurer and would have to be permanent condition for life that meets there terms AND no chance of recovery

globalds

I changed mine to Cavendish online.

I think I found it here.

To get the cheapest quote you have to fill all the paperwork in yourself then send it back.

GMS

Do not automatically go for the cheapest premium.

Many variables involved so make sure you have the correct cover. This is far more important than price.

Cheap cover may be inappropriate meaning premiums are wasted.

glittermonster

I want cheaper but decent?!

If anything cheaper is rubbish obv I'll stay where I am!

To be honest it looks like a mindfield - any pointers of what to look out for?

opinions4u

First of all, price up the cost of cover at a comparison site like www.moneysupermarket.com/insurance.

Try to compare like with like. Level term cover should be more expensive than decreasing term cover, but 20 years on I'm really glad I did level term. Also, don't just cover the mortgage payments. They are probably less than half of your net pay. Pay more to cover your whole lifestyle.

Some providers have a sneaky "review of premium" clause which allows them to increase your premiums in future. Other guarantee their premiums for the term of the policy. A reviewable cheap premium may not be cheap in future.

When it comes to critical illness cover, you really need to lay out the covered conditions side by side. One policy may cover 12 conditions, and another over 30.

Finally, consider PHI as well. Rather than a lump sum, this replaces income in the case of long term illness. With a lump sum, there's a tendancy to blow it all early. Income will at least provide you with a level of financial security long term.

If you don't feel qualified to select the best products for you, see an IFA.