Life cover and critical illness cover

Max_and_Paddy

My current policy started in April 2009. These are the details:

£130,000 of life cover
£80,000 of critical illness cover
21-year plan - ending in 2030

The premium is £35.30. I am a non-smoker and I am 35 years old.

When I took out the policy, my mortgage was £130,000. It is now just under £100,000. I am single and have no dependents (apart from two springer spaniels!). I also have some cover through work, though I'm not sure of the figures.

A quick search on comparison websites shows that I'm overpaying by a fair amount - not least because I don't need so much life cover.

What does puzzle me, though, is that I seem unable on the websites to enter different amounts for life cover and critical illness cover.

Any suggestions?

OshayAway

There are actually several things to take into consideration in the situation you describe.

It would seem that you don't have a need for life cover at all, as you are single presumably no one is financially dependant on you?

With regards to the CIC, is that level, decreasing or increasing? is it comprehensive? does it include TPD (total & permanent disability) if so on own occupation / any occupation / working tasks / functional assessment tests? Are the premiums guaranteed or reviewable? Does the exisiting policy include waiver of premium?

In order to compare like-for-like you would need to asses these criteria along with the number of conditions on your existing plan vs those on any new proposed cover. Also, the quality of the definitions. These are not so simple to compare without help but a good adviser / broker would be able to evaluate these on your behalf.

Multi-benefit plans are available from several insurers currently but not normally on customer facing quote engines. Again, it's something a broker can do.

weighty1_2

Presumably you took the cover through an adviser originally, hence the reason for the life cover and critical illness amounts being different?

If you've got no dependents it often also means you got nobody to depend on if something happens to you health wise. Personally, if I was you I'd consider looking at a long term income protection plan. Depending on your occupation you may well be able to provide yourself with a greater degree of protection whilst also cutting your costs.

Why not go back to the original adviser who you saw? Presumably the cover was arranged in such a way based on his fact find of your circumstances and conversations around what you do and don't feel is acceptable?