Critical Illness Cover

Probi

Hi All,

Wondering if anyone can help, i'm in the process of arranging life insurance with critical illness cover, the cover is for £150,000 according to our financial advisor the policy will pay out the full £150,000 if either one of us (two of us covered by the policy) was to get a critical illness.

Is this generally the case?

I always thought that the critical illness cover would just cover your mortgage payments etc not pay out a lump sum.

Any advise would be fantastic. Thanks

OshayAway

Critical illness cover is arranged on a cash lump sum basis (there are exceptions) MPPI or Mortgage Payment Protection Insurance is an income based benefit designed to pay your monthly repayments while you are off work.

Of course, you can have both, MPPI & CIC.

Your adviser should really be explaining this to you.

Probi

Thanks very much, he did explain about the fact that we would get a lump sum just never explained the difference between the 2.

castle96

look CLOSELY at WHICH CI's ARE covered, and the ACTUAL definition of each event. VERY different with EACH Insurance Coy

ACG

Your either thinking of MPPI or Income Protection.

But as has been said your advisor should be atleast discussing the different options with you.

My personal opinion is that i would rather be safe in the knowledge my income is covered for life rather than having a 1 off lump sum. But each to their own.