a hopeful FTB

herbiesjp

JB

Normally with a stand alone CI policy you will have to survive a specific period of days depending on the policy and provider i.e. 28 days. However with a combined life and critical illness policy, most will indeed pay upon diagnosis of the critical illness immediatlely.

What combined policy have you seen that is different to this? Let me know it could be one to avoid.

As for the list of critical illness, I believe they are indeed comprehensive - my own personal opinion. Your survival of the CI has no bearing on the pay out - the sum assured is what they are contractually bound to pay, if they do not, then take them to court. If you have a heart attack, you may well be lucky enough to survive - the policy will pay out.

Joe_Bloggs

@Herbiesjp
I sense I am stomping on a major source of your income here. Why payout immediately when the patient may die! If they die within 28 days you don't have to pay anything on the critical illness. Illustrate the logic from an insurance company perspective!
Perhaps once you payout on CI the life insurance policy is cancelled.

J_B.

herbiesjp

Not stomping at all. Why do you assume this? Why do you assume it is a major source of income?

If you do not like the mechanics of the policy and how it pays out, then maybe you should take this up with the providers and the FSA. The simple fact is, the CI policy will pay out upon diagnosis - are you saying that everyone that contracts a CI drops down dead immediately? People with CJD? People with MS? People with Alhzeimers? People who have a heart attack?


Indeed once the CI has paid out the policy is the itself finished and has served its purpose - it pays out on the first event if it is a combined policy. I cannot comment for an insurance company for their policies or the FSA who wants written documentation from advisers explaining why a policy has or has not been put in force.

I'm guessing you do not like the policies, and we are all entitled to our opinions.

dougk_2

As I understood combined CI and Life insurance polices are available. For example my endowment cover also included critical ilness. Therefore whether I am diagnosed with a CI or Die the policy pays out.

I guess CI is like any other insurance you need to read all the T&C's. I bet if people checked their home insurance policies they would be surprised at what is and is not covered.

Joe_Bloggs

@Herbiesjp
I am sorry for any offense, but CI can be lucrative. Those who sell such products are morally and financially insulated from those who claim.
Physicians can disagree ! Second opinions can be sought. What would happen if a CI claim led to death through medical negligence ? It is all in the fine print and not in the sales agent's bullet points...
J_B.

herbiesjp

@JB

No offence taken

Any occupation can be lucrative.

Can you explain to me why the people who sell the polices are morally and financially insulated?

I don't see where the medical negligence comes into the equation, when looking at the OP original question.

Simply put, a life and/or CI policy would clear the mortgage on death or diagnosis of a CI. If it didnt, there would be thousands of people complaining.

If OP does nothing, the OP still has mortgage to pay.

What suggestions do you have that would clear the mortgage on death or diagnosis of CI for OP?

It is what is right for you at the end of the day - if it is not right for you then don't do it.

I think that in any discussion you will find for and against - you need to decide where you sit.

herbiesjp

@ dougk

Exactly right

Joe_Bloggs

The isolation point was a teaser but I feel those who sell such a deal should have some experience in getting the money back for their client in their hour of need.
The dead do not complain and the critically ill rarely bother the courts.

Answer to what if dead etc. Use the death in service benefits from pension scheme. This does assume that such pensions provisions apply. If still alive after a CI then change your life style as the old one is killing you!
Don't be taken in by the critical nature of disease as many initially critical conditions are re-diagnosed as chronic and managable with therapy.

J_B. (Who are the the HLC bunch ? Is joint CI a wise move?)

dougk_2

I can see the point of CI cover. I have it with an endowment but now as I moved up to a new property it wouldn't cover me fully. I do not intend to take out extra cover at the moment as there is a long term illness insurance provided by my employer. If I was diagnosed terminally ill I may well just sell up and spend the cash and have fun as I couldn't take it with me!

The point is if you are terminally ill , the chances are you could loose your job and then find it difficult to get a job elsewhere (employers don't like the risk of employing someone who is off work a lot). If you have no job how do you pay the mortgage? Ok if you are on your own (no family) its less of an issue as you only have to think about you. Your maybe Ill for several years before dying so where do you live for all these years and where do you get the money from?

Its a personal choice and depends on lots of other financial issues and if you want security or not.

herbiesjp

@JB

Sorry JB - I've got to be honest you are losing me with your thought process. Why does the seller have to help the applicant "in getting their money back"? The policy will pay out, so why would the applicant want to claim back their premiums?

It is exactly in their hour of need that these policies are most beneficial - when an applicant dies or when they are diagnosed with a CI. The policy will pay out.

You seem to be adamant that the policy will not pay out, and that there will indeed be need for recourse to the courts. Are you talking from experience? Please let us know, as it may be an invaluable insight into the policies and whther they are indeed worthwhile - have you been refused a pay out?

Death in service is good only:
1) If it is offered - not all companies offer this
2) If you stay with the same employer offering that benefit -as you change employer your benefits will change also

JB - what do you suggest to clear the mortgage?

Once you have had a CI then rather than go to court you will have a decision as to what to do with the payout- see the following thread:

http://forums.moneysavingexpert.com/showthread.html?t=46559

As you can see the policies do indeed pay out. Then its up to you clear the mortgage, or spend otherwise - the choice is yours

Quote - Don't be taken in by the critical nature of disease as many initially critical conditions are re-diagnosed as chronic and managable with therapy.

What do you base this on? Again CJD, cancer, MS, Alzheimers etc would result in a pay out manageable or not. Being managebale is not the issue, it is being diagnosed that dictates the pay out.