Life Insurance Discussion

10past6

Hi peeps

I need some advice re life cover as I'm going round in circles.

I have a life insurance policy, which pays out in the event of a terminal illness, and death, however, I'm wondering whether I need cover for anything which may prevent me from working again, for example, supposing I ended up with senile dementia, although not terminal, it would prevent me from working again, or cancer, whilst not terminal, it may well prevent me from working again, my courrent life cover is with NU, I've called them re the cover I'm after, they said they don't offer such a policy

It may well be CCI cover I'm after, although with so many policies on the market it confusing not knowing which applies to me, also, I've heard nightmare stories with CCI claims, if anyone can give me advice, I'd be very grateful.

P.S. I have an IVA application going through, I've not included this "New" cover within my payment plan as yet, so I need to sort it asap.

_Andy_

Hi

Sounds like you're after critical illness cover. I'd suggest getting some independent advice to find a suitable cover and suitable amount.

10past6

_Andy_ wrote: »

Hi

Sounds like you're after critical illness cover. I'd suggest getting some independent advice to find a suitable cover and suitable amount.

Hello Andy

Thx, the problem with CIC from what I've witnessed, it seems to be a hit & miss issue.

_Andy_

10past6 wrote: »

Hello Andy

Thx, the problem with CIC from what I've witnessed, it seems to be a hit & miss issue.

Acutally payout rates are very good. Main reason for them not paying out is non-disclosure when the policy starts (e.g. not telling the company about X medical condition etc).

10past6

_Andy_ wrote: »

Acutally payout rates are very good. Main reason for them not paying out is non-disclosure when the policy starts (e.g. not telling the company about X medical condition etc).

OK Andy, I'm going to look into it.

Cheers

dunstonh

Thx, the problem with CIC from what I've witnessed, it seems to be a hit & miss issue.

Thats rubbish and a Watchdog driven myth.

Stats are 1 in 6 will suffer a claimable event before retirement. Over 85% of claims are paid out on CI policies (average). 10% are rejected typically for not being covered (not unexpected) and 5% for non-disclosure.

10past6

dunstonh wrote: »

Thats rubbish and a Watchdog driven myth.

Hi dunstonh

You know what programmes I watch then?

dunstonh

10past6 wrote: »

Hi dunstonh

You know what programmes I watch then?

No, however, many have "obtained" the opinion CI is worthless based on Watchdog coverage. CI has its limitations and did have some issues for a while although the FOS resolved a lot of the issues and the ABI came out with a minimum standard of coverage which all now meet and most exceed.

Martin himself seems to have bought the Watchdog line and is anti CI. Yet MPPI doesnt get any similar "slagging off" despite having far worse claim stats than CI.

Personally, I would place Permanent health insurance above CI for most people as a priority (ideally a bit of both is usually best) but CI is suffering bad media coverage rather unfairly when there are far worse options around.

10past6

dunstonh wrote: »

Martin himself seems to have bought the Watchdog line and is anti CI

I knew I'd heard / read somewhere about Martin being against CI, which is another reason I had my doubts.

dunstonh wrote: »

Personally, I would place Permanent health insurance above CI for most people as a priority

If you don't mind, can you explain this to me, I think it's this I may be after.

dunstonh

Permanent Health Insurance (PHI) is "proper" income protection. It is not the cut down budget option you get with mortgage payment protection although the principles are similar.

It is income protection on the basis it will start paying out after a deferment period of choice (typically ranging from 1 month to 12 months) and will continue to pay out for as long as you are ill upto the expiry date which typically is your retirement age. The permanent bit comes from the fact the insurance companies are not allowed to cancel the policy regardless of the number of times you claim. It doesnt have unemployment cover (although you can get stand alone "U" cover if you really think it is necessary,. It doesnt pay a lump sum but monthly income.