scottish provident

sroper45

Just thought I would take out a critical illness policy recently with scottish provident and well I should of read through the policy documents a bit better.
A critical illness policy that doesnt pay out for terminal illness. :mad::eek: what aload of rubbish!

dunstonh

A critical illness policy that doesnt pay out for terminal illness. what aload of rubbish!

critical illness is about covering you if you have a critical illness and survive. Terminal illness is something different.

ACG

I think more and more this is something that could be removed from (new) policies. Friends Life launched their product recently and TPD came as an optional extra.

Cancer, Heart Attack and Stroke are the biggest claims for most companies off memory so although i would prefer to have it included than not - its not high up the list of payouts i dont think.

starrystarry

ACG wrote: »

I think more and more this is something that could be removed from (new) policies. Friends Life launched their product recently and TPD came as an optional extra.

Cancer, Heart Attack and Stroke are the biggest claims for most companies off memory so although i would prefer to have it included than not - its not high up the list of payouts i dont think.

TPD isn't the same as terminal illness. TPD might pay out if someone has a terminal illness (only if they meet the TPD criteria) but it's not the same thing as terminal illness cover, which usually comes as an additional benefit with life cover.

ACG

I need to stop spending so much time on here, i glanced over the thread.

Ill take back my comments

kingstreet

I know it's a bit odd, but terminal illness cover has always been linked with life cover, rather than critical illness plans.

At this point I hark back to my usual point. Stand alone critical illness cover can sometimes be more expensive than including life cover, or around the same price.

Critical illness cover typically has a survivability clause which means you have to survive 14 days into your critical illness, otherwise there's no payout.

Given the lack of additional cost, I'd rather link life cover and have someone benefit, rather than miss out on any payout because I didn't live long enough.

kingstreet

Here's an example to illustrate my last point;-

M30NB N/S £100k CI only 25 years* - Scottish Provident = £21.76

M30NB N/S £100k Life & CI 25 years* - Scottish Provident = £21.97.

So, adding life cover increases the cost by 21p per month.

M30NB N/S £100k Life & CI 25 years* - Aviva = £21.10.

Going for life & critical illness cover together brings other providers into the frame. Aviva would offer the same life & critical illness cover for £21.10*, so it's possible to get the combined cover cheaper.

*Based on guaranteed rates, TPD on own occupation basis and with no WoP.

Use of provider names/details isn't intended as a recommendation, merely to illustrate the impact of adding life cover to critical illness cover. Quality of cover and critical illness definitions will differ and price should not be used as the only factor in choosing a plan.

Where writing life cover for individuals, ensure the benefit is written in trust.

dunstonh

I know it's a bit odd, but terminal illness cover has always been linked with life cover, rather than critical illness plans.

I don't consider it odd. Terminal illness means you are expected to die in the next 12 months. Critical illness is about surviving. So, TI is more suited to life assurance than standalone CI. However, your points about Life and CI combined I do agree with.

I reminded my mortgage advisers recently that they must put life and CI illustrations on file with standalone illustrations to protect their backsides (as well as document it in the report). i.e. to protect themselves from those with no need for life assurance but taking it out as it is only pennies different to CI from complaining later that they didnt need life assurance. Or those who only had CI from complaining that they didnt get both despite the small difference.