Life Policy - Expensive?

marcyj_2

An independent advisor (through HSBC) has advised us as a couple to go for the BUPA life policy. This covers the most ailments (47 I think). He typed the numbers into the program and this was apparently the cheapest option as well.

Our mortgage is £340,000 over 30 years. He has quoted us just under £130 per month. This isn't index linked and stays the same throughout the lifetime of the mortgage. I'm presuming mortgage protection is included but will have to double-check that when we see him again tomorrow.

He was also explaining that they were the only company that pays out if you have an amputation. Other companies apparently need you to have two legs or arms off before they pay up. Is this BS?

Does this sound like a fair price? Do you mind telling me what you are paying for your life policy?

opinions4u

Without knowing age, health status, smoking status, what's actually covered on the policy etc it's going to be very difficult to get a clear answer.

Perhaps shopping around for quotes for similar online will give you an answer (google Cavendish).

Wh05apk

If you are looking for critical illness cover, then BUPA are one of the best, although I don't think I have ever seen them come up cheapest!

Wouldn't be too sure about him being independent, if through a bank, often banks will also load the premium to boost their commissions, so you may do better getting quotes elsewhere for comparision.

With regards to the amputation is that something you are really concerned about? I suspect that accounts for about 0.1% or less of all claims, so don't base your purchase on this.

marcyj_2

The amputation bit isn't an issue I just found it a bit strange that most companies only pay out for a double amputation. And the advisor was quite eager to tell us all about it. I think all of his limbs were intact

property.advert

All this cover is never comparing like with like and you need to go through the fine print before signing anything. Your bank is unlikely to be the best place to buy this product.

Also look at the difference between income protection and lump sum cover. You may decide that you want some of both of these products.

Finally you need to look at how harsh they are at payout time. For that and other reasons, I do not have all my coverage with the same company.

Senior_Paper_Monitor

Firstly this obviously appears to be a life/critical illness policy not life.

I do not think you are receiving full range of insurer advice there.

Notrhing inherently wrong with BUPA (good quality cover) BUT ......

A small number of insurers cover single amputation (I agree not necessarily the 'be all' of cover definition) including PruProtect (an intermediary product only - and generally my favourite on quality but certainly not on price) with their 161 conditions (not all pay 100%).

On the issue of 'amputation', depending upon your job may it be covered by total permanent dissability (TPD) definition - an issue only ever discussed by the more knowledgeable advisers (who you rarely find in banks).

I get the impression of a bank advisor with limited knowledge who has picked up on one supposed 'unique selling point' (USP) in his morning's product training course and is hammering it to death.

kingstreet

We can waffle on about individual features of products. My particular favourite is Scottish Provident's ability to settle a claim for certain heart conditions without a sternotomy (surgery to separate the breastbone).

This would make recovery from these conditions a lot faster and less painful.

However, if that is not a major benefit to YOU, I might as well be talking to the wall.

What is important to YOU?

Go to an independent adviser and fully explore your needs and the things you most want to cover. Agree an acceptable budget and let the IFA find all the things you need at the best possible prices.

Meeper

For Critical Illness-type policies, I give a standard quotation for a regular CIC policy and I give a quote on PruProtect's policy, every time. It covers 161 conditions and offers so much more flexibility, there is no situation in which I would consider *not* giving at least a quotation and discussion about it.

For standard CIC, BUPA is a good product.

herbiesjp

More companies are expanding their definitions from standard ABI ones to ABI+

So the HSBC advisor is wrong to state they are the only one to cover a single amputation.

There are also other companies that do not require a sternotomy.

PruProtect is not a Critical Illness policy that works the same as other CI polcies, in that is pays out a varying amount depending on the severity of the CI.


As you can see even advisers have different favourites for different reasons. But it has to be what YOU want. For example some offer inclusive critical illness for your children at lower levels, and to varying ages - some would even allow you and a partner to make a claim on two individual policies for the same condition for the child.

I would definitely advise getting in contact with a good adviser who is independent or who has a panel containing the best providers to compare with.

kingstreet

Meeper wrote: »

For Critical Illness-type policies, I give a standard quotation for a regular CIC policy and I give a quote on PruProtect's policy, every time. It covers 161 conditions and offers so much more flexibility, there is no situation in which I would consider *not* giving at least a quotation and discussion about it.

For standard CIC, BUPA is a good product.

I don't go as far as quoting for it, but I always discuss the difference between severity-based cover with the possibility of earlier payments at a lower level and full critical illness with total payout. I use a "filter" form to establish the client's needs and have them sign it to confirm the selected route matches their needs/feelings.

Meeper

More than happy to get into a debate on the merits of the severity-based policy any time. I am of the opinion that if the FSA did a review of such policies they would be inclined to make it a compulsory discussion to have with any client looking to take CIC.