Life Insurance and CIC

dunstonh

Death in Service: Now gave us an option to increase to 8 times salary so can get cover through work for £260k for £6 a month

Very good figure. However, risk is that if you become seriously ill in future, you may find yourself tied to this employer if you are unable to get cost effective or any personal life assurance.

New CI through work: Now offer cover up to £160k(more that what Vitality were quoting for) and costing me £28 a month

Does this have an option to be taken over by you if you leave the employer?
What quality if the CIC cover compared with others?

Income Protection: Get free 75% cover of my wage which would be enough to manage our current lifestyle if we paid off a few debts but says cover is for max 5 years

That is a budget PHI plan. A decent PHI would take you to your selected age (typically matching retirement age). If you are long term ill and unable to work,5 years wont be helpful. In general, if you do become long term ill, then on average, the timescale off work goes for longer than 5 years.

but the vitality guy was very blunt in saying using your work cover in this way is very risky

Every option has risks or consequences. If there is no option to convert the benefits to you personally if you leave employment, then it could tie you to the employer and to the fortunes of that employer. So, it is a risk. However, using Vitality as a product provider is a risk as well.

Noobie2011

dunstonh wrote: »

Very good figure. However, risk is that if you become seriously ill in future, you may find yourself tied to this employer if you are unable to get cost effective or any personal life assurance.

Yes I thought so and covers our mortgage and more. There is no option to take over the cover to myself so would lose if leave the company and be face with having to get a higher premium myself die to age and the fact my new employer may not offer benefits.



Does this have an option to be taken over by you if you leave the employer?
What quality if the CIC cover compared with others?

As above cannot be taken over by myself. Not checked that so will find out who does the cover for my work and what is included. Again risk is having to find my own more expensive cover or going without if leave the company


That is a budget PHI plan. A decent PHI would take you to your selected age (typically matching retirement age). If you are long term ill and unable to work,5 years wont be helpful. In general, if you do become long term ill, then on average, the timescale off work goes for longer than 5 years.

Yes the worry here is only cover me for 5 years although basing it on our current financial situation 5 years would be plenty enough to adjust to just one wage if I was unable to return to some sort of work


Every option has risks or consequences. If there is no option to convert the benefits to you personally if you leave employment, then it could tie you to the employer and to the fortunes of that employer. So, it is a risk. However, using Vitality as a product provider is a risk as well.

Yes I agree and a risk we would need to decide on and also plan for if we needed to change jobs and lost the cover and premiums were going to be expensive

Thanks for the advice

Weighty1

Noobie2011 wrote: »

Yes I agree and a risk we would need to decide on and also plan for if we needed to change jobs and lost the cover and premiums were going to be expensive

Thanks for the advice

In rough terms the cost of insurance double every 10-years. That said, probably the bigger risk of premiums increasing is the risk of your health changing.

I was diagnosed with Type 1 diabetes just before my 38th birthday. I'd always been fit and well and lived a healthy life, however, it runs in my family as my brother has also had it since age 16. I was just lucky to get it so late in life.

I'm now in a position were NO insurer would offer me either critical illness cover OR income protection so if I didn't already have my own insurance in place at this time I'd have been snookered.

Life is full or risks. It's up to you as how to much risk you want to take with future insurability.

Noobie2011

Weighty1 wrote: »

In rough terms the cost of insurance double every 10-years. That said, probably the bigger risk of premiums increasing is the risk of your health changing.

I was diagnosed with Type 1 diabetes just before my 38th birthday. I'd always been fit and well and lived a healthy life, however, it runs in my family as my brother has also had it since age 16. I was just lucky to get it so late in life.

I'm now in a position were NO insurer would offer me either critical illness cover OR income protection so if I didn't already have my own insurance in place at this time I'd have been snookered.

Life is full or risks. It's up to you as how to much risk you want to take with future insurability.

I do agree it is all about what level of risk suits you. I am looking into maybe still getting a joint Life policy and just IP for my wife as I think everything else is covered

Thanks