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Friend paying £180p.m for Critical Illness cover?
Comments
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Pedro, how can something paying out over 90% be companies trying to get out through medical loopholes?
There are 2 types of declines - 1 is where the advisor and or client have failed to disclose something which they would be expected to remember (ie a tumour being removed or something, it wouldnt be oh you had a cold in 1985 and you failed to mention it).
The other is where you have a cancer or other illness and it is not deemed serious enough to warrant a pay out.
You will always hear negative stories where people write to the papers or post on forums but it doesnt mean the company were wrong. It just means the customer is unhappy, if the company were in the wrong and it got reffered to the financial ombudsman then you would expect the insurance company to be put in a position where they would have to pay out.
As for Lisyloo's post - In the majority of cases i would recommend IP/PHI over Critical illness. Like you say, if your off work there is no income - how can you pay to keep your critical illness policy in force?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I was quite interested in Dunstonh's quote of banks policies usually costing 25% to 40% more, what would you advise my friend do- visit an IFA? (Im guessing that a comparison site is much much to vague to consider?)
An IFA will be cheaper than the bank. A quote comparison site on insurance will be cheaper but they wont offer all companies and they will focus on price rather than quality. So, the person "buying" needs to be aware of things like renewable, reviewable & guaranteed premiums (yearly renewable typically appears cheapest but can end up being the most expensive). The different levels of coverage will not typically be disclosed in any real detail on quote comparison sites. So, the person has to decide whether they want to do the research themselves or use an IFA to do it. Using the IFA will cost more but will be cheaper than what they have. It may well be worth while going fee basis with the IFA but use commission to the value of the fee to pay for it. So, if the fee was £800, the policy would be set up to only generate £800 of commission with anything above that not taken and the premiums reduced to reflect it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
yes, sure sorry bob, nice to come across someone polite :-)0
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