Critical illness cover, or income protection??

Murts

carlito65 wrote: »

The quote I have had is for own occupation, so that's good. Also it pays out till I'm 67, so I guess its the full version.


I think its a good idea to defer the payments to 12
months, to help keep the cost down. I don't know if I'm being neive, but I'm thinking if the worst was to happen. I could call my mortgage provider, and explain about my insurance payout. Maybe drop to an interest only mortgage, or maybe take a payment holiday.

QUOTE]


Your right to have a look at own occupation but when it comes to the deferment period think about why you are taking the cover. If you can only afford to live for 3 months or for example your employer will pay you for 3 months then although a 12 month period would be cheaper it wont help you in that 8 month gap and what will be the first cost you need to lose? The insurance premium so set the deferment period to a suitable one for you.


When it comes to amount beware that most insurers will only provide you with a benefit which once added to state benefits (although minimal) only adds up to around 65% of your normal salary. After all if you had 95% of it coming in what incentive would you have to return to work?