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Do I need critical illness cover now

Hi
I am about to move and with some pruning and reining all my outgoings will be covered (just) by my pension. However I currently am dituering about critcal illness insurance I have. It's £81 a month and I would struggle to cover this amount. My question is: at 61 and no longer working, is his.policy of any real benefit to me (I am clueless over things like this so I apologise in advance for not knowing the answer myself).
Anyone with any expertise or.knowledge who could.advise me???
debt free 2021 at current DMP rate[/COLOR] (probably be in an old peoples home by then)
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Comments

  • dunstonh
    dunstonh Posts: 120,231 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Do I need critical illness cover now
    When are you going to suffer a critical illness?
    My question is: at 61 and no longer working, is his.policy of any real benefit to me (I am clueless over things like this so I apologise in advance for not knowing the answer myself).

    Impossible to answer.
    If we all say its not and get rid of it, you will not thank us if you suffer a claimable event that could have paid out the sum insured.
    If we all say that you should keep it and you dont suffer a claimable event then you will end up thinking it was a waste of money.
    Anyone with any expertise or.knowledge who could.advise me???
    That would be a breach of FCA guidelines if you are expecting that on the board.

    You havent said what the sum insured is. It makes it difficult to know if the £81 is good value for money against the sum insured or not. £81 for £10k is clearly not as good as £81 for £100k.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • anotheruser
    anotheruser Posts: 3,485 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    dunstonh wrote: »
    That would be a breach of FCA guidelines if you are expecting that on the board.
    There's a significant difference between guidelines and rules though...

    Most people thought I was a troll when I asked this when taking out a mortgage. To this day, I don't have any critical illness cover and probably won't have any in the future either.
  • Let's just say I'm glad I took out critical illness cover.

    The claim went in four years before the end of the policy term.
  • dunstonh
    dunstonh Posts: 120,231 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    There's a significant difference between guidelines and rules though...

    Not in the eyes of the FCA. Plus, we have had posts here reported to the FCA before and they have taken an interest.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Weighty1
    Weighty1 Posts: 1,218 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    edited 28 December 2016 at 1:32PM
    Looking at it logically, if your income is going to be guaranteed irrespective of your health (which would generally be the case if you are retired) then you don't necessarily *need* critical illness insurance.

    Whether you *want* it is another matter. Macmillans have done research into the costs associated with being a cancer sufferer and it caused a fairly big increase in people's expenditure.

    Not only that, as Dunstonh asks "when are you going to have a critical illness?". How would you feel if you cancelled the policy and then suffered a claimable condition 2-months later?

    Only you can answer that last question so in effect, only you can decide whether it's worth keeping the plan or not.
  • saver861
    saver861 Posts: 1,408 Forumite
    tugrin wrote: »
    Hi
    My question is: at 61 and no longer working, is his.policy of any real benefit to me (I am clueless over things like this so I apologise in advance for not knowing the answer myself).
    Anyone with any expertise or.knowledge who could.advise me???

    To state the obvious, you are more likely to need Critical Illness cover as you get older.

    You don't say when the cover ceases - I presume it will cease at some point e.g. when you are 65 thus at or near SPA.

    It also depends on the policy - generally older policies have better coverage with less exclusions.

    It also depends on your current health status, family health, risks etc.

    Generally, for this insurance, its better to have it and not need it than to need it and not have it.
  • anotheruser
    anotheruser Posts: 3,485 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    dunstonh wrote: »
    Not in the eyes of the FCA.
    I would like to see that challenged.

    A guideline is exactly that, a guide. If it's a condition or a rule, it should state that.
  • dunstonh
    dunstonh Posts: 120,231 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I would like to see that challenged.

    A guideline is exactly that, a guide. If it's a condition or a rule, it should state that.

    The whole FCA book is guidelines. Firms are left to interpret those accordingly.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • d70cw6
    d70cw6 Posts: 784 Forumite
    no

    /10 chairs
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