Life & Critical Illness Insurance - few questions and provider options

stephenni1971

ACG wrote: »

not sure i can do that as it could be classed as leading? You probably know who im thinking of?

Its my opinion only anyway but they bought/merged a couple of different companies over the last year or 2 and made me redundant in the process... yet i still think their contract is far better than anything else on the market.

Friends Life!

Although the poster states he/she are only going for life cover so there is little difference between most providers on this only. Critical Illness is another story though!

That said Aviva and a few others have really bumped up their products so there isn't the clear cut choice there once was...

ACG

Best Doctors is the bit that does it for. You get that no matter which contract you take out.

I wrote a case, 2 weeks later the blokes daughter was in and out of hospital for a month - posted the daughters medical notes off and they looked into it.

For what was 15p a month more (on a £50 a month policy), gave the parents total peace of mind that their daughter was getting the right medication.

weighty1_2

my wife smoked once-twice in the last year - I will classify her as non-smoker

.....and the insurer will class this as a non-disclosure issue and may not pay out the full amount in the event of a claim!!!

Smoking includes cigars/cigarettes/pipe tobacco and nicotine replacement products consumed within the last 12-months, INCLUDING occasional use.

I rarely advocate just taking life cover for the first 12-months because the majority of clients never get round to then adding to it. If you budget for it from the start then over time it generally becomes an easier pill to swallow from a cost perspective.

As ACG mentioned, some cover is better than none and this is especially true with critical illness since you are far more likely to claim on this than life cover. Also, as has already been mentioned, why not look at a long term income protection plan (PHI) this might be more affordable than critical illness, especially since many friendly societies don't differentiate between smokers and non-smokers.

I'd also suggest that you speak to a specialist broker.

csq

Thanks all! You have been hugely helpful. I am about to speak to a broker this week.

kingstreet

When you start your discussions, tell the broker your budget and have them design the best protection package they can for the amount you want to spend.

It's better to have some cover and to part-address a need than to have no cover at all for some issues.

ACG

PHI/Income Protection (I hate calling it income protection on here because people will just look at ASU/MPPI) was the reason i was saying speak to a broker - Critical illness can be expensive so having a lump sum payment and a smaller monthly payment can be a way to get around the cost issue.

Just note im not suggesting you do this, its just a few different routes to ensuring your as protected as you can be for your budget. A good advisor will at least look at PHI, a bad one (in my opinin) will only look at life and critical illness.

magpiecottage

When you say "broker", you need an INDEPENDENT adviser who can recommend products from the entire market, not somebody who will sell products from one, or a restricted range of, providers.

In terms of cover, I agree with the others. Life cover first.

In terms of Critical Illness versus Permanent Health Insurance, CI is the "sexy" product but unless you are "fortunate" enough to get a specified illness you get nothing - even if you get something with similar symptoms to a specified illness that is not actually that illness.

By contrast, PHI will not pay off your mortgage in a lump sum but it will replace you income, so that you can afford the repayments - whatever the illness is.

If I was given the choice of defending a recommendation of PHI in preference to CI or defending a recommendation of CI in preference to PHI, I would choose the former every time.

C.breezy

Quit Smoking!!Premiums will plummet!

csq

C.breezy wrote: »

Quit Smoking!!Premiums will plummet!

I know. That's the plan.

csq

magpiecottage wrote: »

When you say "broker", you need an INDEPENDENT adviser who can recommend products from the entire market, not somebody who will sell products from one, or a restricted range of, providers.

That's what I'm doing. I've already spoken and been recommended Aegis or Bright Spark (?), waiting for the quotes to be emailed.
I've also been recommended at least minimum Critical Illness Cover (say £20K), because you never know...