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Life & crit illness - can this be correct??

I have been accepted for a Life and critical illness policy for both my wife (40 next b'day) and myself (42 next b,day) for a sum of £13.40 per month.

100k mortgage over 20 years.

We are both in good health but this seems incredibly cheap to me.

Anyone think they may have made a mistake?

Comments

  • Looks like standalone life cover to me. I would double check CI is included and be V surprised if it is!
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    That premium does seem far too cheap, even for budget level CI cover.
    Are you mixing up terminal illness with critical illness?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • telfordwhite
    telfordwhite Posts: 297 Forumite
    It is Definitely Critical Illness with Life (reducing cover).

    It compares almost like for like with my existing policy.
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Something isnt right at that price.

    I just put a test quote through the system with those details and it was coming out at £46.04 pm for Joint life first death with comprehensive CI (budget CI was £44.53). Life with terminal illness cover was coming out at 10.69pm

    I doubt the insurer has made a mistake as most of the protection systems are automated. Its usually an input error when something is wrong.
    Check the following:
    1 - dates of birth
    2 - Joint life first death (not second death or joint owner but single life)
    3 - Verify it says critical illness and not terminal illness. Make sure critical illness cover appears on your illustration as it may be a plan feature but only if it is selected. The Key features documents for the products are multi-purpose.
    4 - Make sure it is a decreasing term assurance and not a yearly renewable decreasing term assurance.
    5 - Make sure the sum assured for the CI is the same as the life assured and that you havent typed in 10,000 by mistake.
    6 - Check premiums are guaranteed and not reviewable.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • telfordwhite
    telfordwhite Posts: 297 Forumite
    dunstonh wrote: »
    Something isnt right at that price.

    I just put a test quote through the system with those details and it was coming out at £46.04 pm for Joint life first death with comprehensive CI (budget CI was £44.53). Life with terminal illness cover was coming out at 10.69pm

    I doubt the insurer has made a mistake as most of the protection systems are automated. Its usually an input error when something is wrong.
    Check the following:
    1 - dates of birth
    2 - Joint life first death (not second death or joint owner but single life)
    3 - Verify it says critical illness and not terminal illness. Make sure critical illness cover appears on your illustration as it may be a plan feature but only if it is selected. The Key features documents for the products are multi-purpose.
    4 - Make sure it is a decreasing term assurance and not a yearly renewable decreasing term assurance.
    5 - Make sure the sum assured for the CI is the same as the life assured and that you havent typed in 10,000 by mistake.
    6 - Check premiums are guaranteed and not reviewable.

    Cheers I'll check that, not really sure what this bit means though:

    2 - Joint life first death (not second death or joint owner but single life)
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    When you set up the policy you have a choice of who owns it and who the lifes assured are. You need to make sure that there are two lives assured on the plan and that it is not paid on second death but first death. second death would be cheaper than first.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • telfordwhite
    telfordwhite Posts: 297 Forumite
    Policy details came through today and it was indeed only for life with terminal Illness.

    Have received a revised quote for 64 quid which does seem a little more realistic.

    Dunstonh, I have to thank you for your expertise and the time you spent explaining the situation to me, you have potentially saved me a real problem in the future.

    Heres hoping i never have to use the policy anyway.
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Good that you found the issue. Although £64 seems expensive. The details you quoted were showing £46 on nil commission (fee) basis. Even on commission basis, I wouldnt expect that to go much above £55. It may be worth you trying Cavendish out for a life quote. £25 for nil commission price would see you cover the fee in just 2 months.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • telfordwhite
    telfordwhite Posts: 297 Forumite
    dunstonh wrote: »
    Good that you found the issue. Although £64 seems expensive. The details you quoted were showing £46 on nil commission (fee) basis. Even on commission basis, I wouldnt expect that to go much above £55. It may be worth you trying Cavendish out for a life quote. £25 for nil commission price would see you cover the fee in just 2 months.

    Managed to get it for £58 in the end with same company, could have got it a couple of quid cheaper elsewhere but would have had to reapply and for 2 or 3 quid I couldn't be bothered.

    Cheers.
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