CIC - is it worth it?

rb157

I thought that I would relate some personal experience regarding Critical Illness Cover as most of the views from Martin and other Money Savers are negative.

I took out a CIC policy about 10 years ago. I was 24 at the time and thought that in the next 25 years I was unlikely to need it, but it was not much more that my endowment policy and so I went ahead and covered myself.

10 years on and I was fit and healthy, married with my wife 7 months pregnant and working as a freelance IT consultant. That was until in december when I had a stroke. I lost all control of my left arm, had difficulty walking and my speech became monotonous and slurry. Fortunately 2 months later I was 90% recovered, but even now I occaisionally have some lack of control of my left fingers and slight speech difficulty. It is nothing that would stop me working so I cannot claim on my PHI policy, but I know it is there and lack the confidence to go out to interviews and work full time in a demanding job.

Fortunately though my CIC policy has paid out, enough to cover my remaining mortgage. This has removed the stress of returning to work until I am full recovered and I could work in something less demanding. However for the time being I can enjoy my 6 month old daughter, which has to be the bast recuperation available.


So is CIC worth it? For me, yes and I would recommend it if you can afford the little extra. However I know that I have been very lucky that my condition was covered, that it was cheap when I took it out and I have been able to afford it.

Ian_W

rb157 wrote: »

However I know that I have been very lucky that my condition was covered, that it was cheap when I took it out and I have been able to afford it.

I think that is the problem with CIC but you were "lucky" - there was a guy on the news to-day whose cardiologist said he had a heart attack but his CIC wouldn't pay out because it wasn't one - in their strictly defined terms.
You will note that lucky was in quotes, lucky it wasn't worse and lucky the insurance has covered it but certainly not lucky to have a stroke at such a young age. Best wishes for your full and speedy recovery.

rb157

Thanks Ian,

I absolutely agree with you there are often fine lines regarding whether a CIC policy will pay out. However they are generally designed as effectively an advanced death payment and priced as that.

I have been very very lucky, it could have all been much worse, lucky that I am young and fit and can make a pretty full recovery and very lucky that my particular condition was positive enough to be covered. I know that CIC fails some people at the worst of times by not paying out, however I paid the little extra and it was worth it for me. Everyone needs to make their own decision, I just wanted to balance out some of the negative comments I have seen.