Decent life assurance quote?

Zola.

I am 30, good lady is 28.

Our first quote was about £100 for a joint policy...seemed a lot to pay per month. went back to MB and asked for something bit lower but still competitive. Got this:

Joint policy cover up to aged 65
£170k if I die, 182k if good lady dies
£80k on critical illness for both.
£1k per month income replacement.

Total cover cost is £75 per month.

InsideInsurance

Life insurance is very cheap

You are however buying Critical Illness which is significantly more expensive. Do you actually understand what critical illness is and what it does and doesnt cover?

Not sure what you exactly mean by "income replacement" to comment on that element.

Zola.

Income replacement would be if I was incapacitated somehow and was unable to go to work, e.g. broken legs or something.

If it was anything like the last Critical Illness quote it seemed to have good cover for all the most serious illnesses etc.

InsideInsurance

Zola. wrote: »

Income replacement would be if I was incapacitated somehow and was unable to go to work, e.g. broken legs or something.

If it was anything like the last Critical Illness quote it seemed to have good cover for all the most serious illnesses etc.

But income protection comes in several flavours. The biggest divide is between ASU (aka PPI) which is short term cover that pays out for 1 or 2 years maximum and PHI which is the full fat version and will continue to pay out until you are 65 (or a date of your choice)

Based on your premiums I suspect its an ASU (or just the AS component) that you've been quoted on which is ok but what is the plan if your too ill to work for 4 or 5 years? The AVERAGE PHI claim is about 7 years.

CI only pays out on specified conditions and only if you get them to the level required. There are plenty of things that may mean you wont be able to work for years that CI wont pay out on, as well as some which may not actually take you out of work but it does pay for.

Zola.

Indeed, with that considered do you think that quote is decent enough?

kingstreet

If the person providing the quotes is tied to one provider, he'll be cutting the quality of the cover to reduce the cost.

You'll get work tasks IP, instead of own occupation. Premiums may be reviewable and not guaranteed.

Th best CI cover has over fifty illness definitions and offers part-payments for less severe illness, the worst, perhaps twenty and you may have to get the illness in a more severe form before there is any payout.

You really must be careful not to reduce the chances of a successful claim and end up paying more in the long-run to get less!

Zola.

The original one just paid out more on the 3 areas I mentioned above. The CA cover etc is all the same. Just less £££