Help with life insurance

Andrew_Ryan_89

Hi guys,

My partner and I recently moved into our first property and I thought it would be wise to take out life insurance. I am 27 and she is 28.

I went onto Compare the Market and looked at cover for £500k and was "quoted" around £18 a month though I appreciate this was before any intense health questions.

I also ticked an option to have a broker contact me and he was offering mortage protection for 40 years (with the payments reducing with the mortgage) and critical illness cover (with life assurance) for 20 years for £100k, £50k of which can be claimed upon diagnosis of a critical illness.

This was all coming together at £41.61 a month. I was a little confused why that was so "high" when my £500k life insurance policy, albeit not including critical illness, was around £18 a month.

He also shared another quote with me for life insurance coming in at £500,000 of Assurance with £50,000 of Critical Illness Cover over 40 years at £69.26 per month.

Though I haven't looked too much into it, it seems like I will be getting a better deal from the online quote or does critical illness, £50k of it, really account for the significant price increase?

Hope this makes sense!

Weighty1

The chances of being diagnosed with a critical illness are about 4-5 times higher than the chance of you dying at any given point in time so the premiums reflect this increased risk, so YES, the critical illness element will really bump the cost up.

Personally, I think the adviser would have been better off looking at the combination of life insurance and income protection for you. £50,000 sounds a lot but if you suffered a critical illness such as MS, or being paralysed and could never work again £50k would likely run out quite quickly. Long term income protection would pay you an income until your anticipated retirement age in this instance.

In some instances, income protection can be cheaper than critical illness cover as well.

Obviously, it depends on any work related benefits. If there's a group income protection scheme offered by your employer then personal cover would not be required but there's not that many companies offering this employee benefit.

Kynthia

ranjitrai wrote: »

The Medicare run by the Federal government provides health insurance for people above 65 years of age and those with certain types of disabilities. Apart from private health plans, there are several other Healthcare policies under several state governments. There are number of health insurance companies in Anaheim and California such as "Rais Insurance" that are providing health insurance, auto insurance, etc. Individuals buying the health insurance policy must always compare various elements of the policies of different companies.

This is a UK Forum.

Norman_Castle

ranjitrai wrote: »

The Medicare run by the Federal government provides health insurance for people above 65 years of age and those with certain types of disabilities. Apart from private health plans, there are several other Healthcare policies under several state governments. There are number of health insurance companies in Anaheim and California such as "xxxxxxxxxx" that are providing health insurance, auto insurance, etc. Individuals buying the health insurance policy must always compare various elements of the policies of different companies.

Newbie with two posts both naming the same company. Spam.

pinkteapot

Critical illness cover is considerably more expensive than life assurance alone, so the quotes sound about right to me!

You need to look at your circumstances and decide what types of insurance you want.