Critical Illness without Life Insurance

elfy100

Hi, I currently have combined life insurance and criticall illness cover, however as I have no dependants I want to get rid of the life insurance and just have critical illness but I am finding it hard to get one without the one. Does anybody know of any companies that offer just critical illness? - any help would be most appreciated, many thanks. x

ACG

There are a few, but not many that will deal with customers direct. You would be better speaking to a mortgage or financial advisor.

To be honest, it wont make much difference to the price, you might even find it more expensive if you took the cover out a few years ago.

If you have no dependents, you might want to have a look at PHI/Income protection.

opinions4u

When I used to sell freestanding critical illness cover, adding life cover to it made a tiny difference to the premium. Less than 10% rings a bell.

Your desire to change things may be a false economy now you're older.

elfy100

Thanks for the replies so far, something to think about I guess! x

Cazza

CIC policies will include a nominal £100 Life Cover, this is in order to ensure that any payout is not taxable in the event of a claim. This could be why you're struggling if you are specifically telling people you want no Life Cover linked to the policy at all.

ACG

Cazza wrote: »

CIC policies will include a nominal £100 Life Cover, this is in order to ensure that any payout is not taxable in the event of a claim. This could be why you're struggling if you are specifically telling people you want no Life Cover linked to the policy at all.

What?!

Its insurance any payout is tax free - its not an income. There are exceptions to this but thats more in depth than what we are talking about here.
Why would critical illness pay out life insurance.

opinions4u

Cazza wrote: »

CIC policies will include a nominal £100 Life Cover, this is in order to ensure that any payout is not taxable in the event of a claim. This could be why you're struggling if you are specifically telling people you want no Life Cover linked to the policy at all.

Please can you reference this with a link, because this is news to me.

kingstreet

elfy - I did a quote for someone else on here the other day. Stand alone critical illness cover was more expensive than the cheapest death or earlier critical illness cover I could find.

You may have no dependents, but look at it like this.

If you have a critical illness and don't survive long enough, there's no payout. If you have life cover included, the insurer pays out either way. Leave it to a brother or sister, even a friend, but if it costs less, you might as well leave it to someone.

Try an IFA and see what quotes you get.

elfy100

Thanks all, Kingstreet I like your thinking, I'd never thought of it in that way!

Cazza

opinions4u wrote: »

Please can you reference this with a link, because this is news to me.

Yep, I'll take this one back

I was sure I remembered from when I was training there was a nominal £100 included on CIC policies for tax purposes but I can't spot anything to back that up, so my mind is probably playing tricks on me! (In my defence I'm not working in the sector any longer and haven't done for 4 years, so I wouldn't have given this advice to a client!)

starrystarry

Cazza wrote: »

Yep, I'll take this one back

I was sure I remembered from when I was training there was a nominal £100 included on CIC policies for tax purposes but I can't spot anything to back that up, so my mind is probably playing tricks on me! (In my defence I'm not working in the sector any longer and haven't done for 4 years, so I wouldn't have given this advice to a client!)

Not so hasty Cazza, I'm with you on this one. The £100 life cover that is bunged in with standalone CI is only there to make it a qualifying policy for tax purposes (the policy must secure a capital sum on death or earlier disability).