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Term Assurance with Critical Illness Cover

skyking_comms
skyking_comms Posts: 74 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Insurance & life assurance
Hi,

7 years ago when I took out my first mortgage I took out a term assurance with critical illness cover through Legal and General. I pay £33.85 a month on a £78,000 mortgage. I am now moving house and taking out a £121,125 mortgage over 25 years so need to change my term assurance.

My question is I never felt like I was getting the best deal. I get good sick pay with my employer (6months full pay, 6 months half pay).
My biggest concern is paying the mortgage should something happen to myself or my wife. Would I be better off taking out life assurance?

This time I want to make the right decision and feel happy about it!

Grateful if you can provide any advice

Thanks

Darren

Comments

  • ACG
    ACG Posts: 24,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 8 April 2011 at 7:47AM
    There are a few different options...

    You can look at life cover - pays out should you die. Critical illness pays out if you get a critical illness. Income Protection, pays out should you be unable to work through your health.

    Personally, im more of a fan of Life cover and income protection over life cover and critical illness. However everyone is different.

    If you took your cover out through a bank, you may well be paying too much. If you went direct or with an advisor then you may be paying a standard price.

    If your after actual advice try unbised.co.uk. Otherwise you can take a look at the blog page on http://www.manchestermortgagebroker.co.uk/blog.php for more info on some of the different products available.
    I am a Mortgage Adviser
    You 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.
  • stephenni1971
    stephenni1971 Posts: 895 Forumite
    ACG wrote: »
    There are a few different options...

    You can look at life cover - pays out should you die. Critical illness pays out if you get a critical illness. Income Protection, pays out should you be unable to work through your health.

    Personally, im more of a fan of Life cover and income protection over life cover and critical illness. However everyone is different.

    If you took your cover out through a bank, you may well be paying too much. If you went direct or with an advisor then you may be paying a standard price.

    If your after actual advice drop me a PM or try unbised.co.uk. Otherwise you can take a look at the blog page on http://www.manchestermortgagebroker.co.uk/blog.php for more info on some of the different products available.

    Errr.. you sure about putting that in your posts?
    I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.
  • ACG
    ACG Posts: 24,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Why? Are you not allowed to do that on here?
    I wouldnt be offering advice over PM obviously but just a method of getting in contact.

    If your not allowed to do it, i appologise. Please remove that bit.
    I am a Mortgage Adviser
    You 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.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    skyking_comms wrote: »
    My biggest concern is paying the mortgage should something happen to myself or my wife. Would I be better off taking out life assurance?

    I assume that the "something" you're talking about is death...but there are all sorts of things that could happen to you that would prevent you from paying your mortgage. You need to think about what you want to protect against, and go from there. For example, death, critical illness, sickness, unemployment...

    Six months full pay and six months half is a decent package from your employer, but leaves you somewhat stuck after a year. You can get income protection with a one year waiting period, so it kicks in after your sick pay finishes.

    We can't provide advice over the forum; it's against the rules (and even if it wasn't, I'm not authorised to give advice). More to the point, we don't know enough about you to advise you properly.
  • stephenni1971
    stephenni1971 Posts: 895 Forumite
    ACG wrote: »
    Why? Are you not allowed to do that on here?
    I wouldnt be offering advice over PM obviously but just a method of getting in contact.

    If your not allowed to do it, i appologise. Please remove that bit.

    The rules of the forum are that you are not allowed to tout for business. Inviting someone to PM on your post could be taken as that. In addition your signature also has an invitation to contact, or you suggest you will pass on their details. This is also in contravention of board rules.
    I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.
  • ACG
    ACG Posts: 24,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    stephenni1971 wrote: »
    The rules of the forum are that you are not allowed to tout for business. Inviting someone to PM on your post could be taken as that. In addition your signature also has an invitation to contact, or you suggest you will pass on their details. This is also in contravention of board rules.

    oops.
    Cheers for letting me know. Ive updated both.
    I am a Mortgage Adviser
    You 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.
  • castle96
    castle96 Posts: 3,052 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    be aware that the range of CI definitions will/may have changed (diminished) since 7 years ago. The old policy may well be worth keeping
This discussion has been closed.
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