Critical Illness & Life Cover

johnnyfeb

Hi

I've been paying for Life & Critical Illness cover for as long as I've had my mortgage (12 years so far), and I'm single - I know, I know :wall:

Wasn't cheap either, £70 per month with AIG Life (YourLife plan, decreasing term), but it's probably the critical illness element that's the largest part of it.

I recently reduced my mortgage term so now i've got less than 4 years to go on my mortgage. If I hadn't let things slide for so long I would have got rid of this insurance years ago, but now I'm 45 I'm thinking it may be useful to keep some cover till the mortgage is paid - but ultimately I want to greatly reduce the monthly premium I'm paying.

I could probably ask them to take off the life cover element which might reduce the premium a little, but ideally I'd like to reduce to the £20 - £30 mark - or maybe I should just risk it and get rid of it completely?

What do you think a 45 year old single guy (no dependants) should do in this situation?

csgohan4

Do you need life insurance and critical illness? unless you plan on having children and a wife. When you die who will the life insurance money go to? no dependents or will? then to the government

i would focus on Income protection first and then what you have

FIRSTTIMER

I am similar to you - I took out L&G Life and CIC for £200k and IP for £3k a month fixed until 70 and 65 for IP when I was 25. Both cost me around £650 a year in total. A good 10 years later I am kind of trapped as to get it again the cost is now practically double and some, I will keep both now for life to be fair. Think it was a worthwhile 'investment'

johnnyfeb

I took mine as a first time buyer where, at the time, they made me believe that it was essential to have life cover for your mortgage.

I’m probably going to drop it completely. I can always get a new policy later if I get married etc. I’ll probably look at some kind of income protection for the remainder of mortgage term. Will speak to AIG to cancel on Tuesday and call some broker to see what PHI / income protection options there are - if anyone has any suggestions on policies let me know 🙂

Ta.

FIRSTTIMER

My advice is to go with money world. You can quote online and then take out. L&G are usually the cheapest, which is who I am with. L&G are probably not the best for Life & CIC but IP is different, the way I was described it was that its hard to argue against the doctor, if you can't work you can't work and picked own occupation. One thing to also bare in mind is that IP tends to base premiums on career on policy take out so if you're occupation is currently a high risk one you will end up with a life long high premium regardless of your occupation in the future. Hence plan accordingly (take from that what you wish).

I pay £28 a month fixed until aged 65 for £3k a month with 6 month deferral. I would only need to claim back 3 months to collect all my premiums back for the lifetime. Bargain me thinks.

SonOf

a life and CIC policy costing £70pm is probably around £68pm CIC and £2 life assurance.

What do you think a 45 year old single guy (no dependants) should do in this situation?

You are right at the age when CIC claims are more likely to start occuring.

FIRSTTIMER

Exactly....very true

Beccib

Hi guys, just after some advice on whether if anyone’s been in a similar situation or has taken an insurance company to court before. Here’s my story in a nutshell, I was diagnosed with stage 3 melanoma in feb this year. I claimed on my critical illness cover with aviva which I was told was going to payout 57000, in the end they paid 3600 which was a correct sum which we didn’t know at the time. We have never had paper or online statements in the ten year decreasing term of our insurance policy so went on the investigators say so it was going to be 57000. In the time of thinking it was the bigger sum, we sold our house cheaper and had a mortgage in principle with this amount as a deposit. We got a full apology off aviva and they paid 5000 in compensation, we escalated to the ombudsman and they have agreed with aviva basically. So we are back living with parents saving a deposit once again after aviva messed up. I just wanted to know if it’s worth taking them to court or seeing a solicitor. Any advice or knowledge would be appreciated as we are desperate to get on with our lives after the big C. Many thanks Rebecca

SonOf

Beccib wrote: »

Hi guys, just after some advice on whether if anyone’s been in a similar situation or has taken an insurance company to court before. Here’s my story in a nutshell, I was diagnosed with stage 3 melanoma in feb this year. I claimed on my critical illness cover with aviva which I was told was going to payout 57000, in the end they paid 3600 which was a correct sum which we didn’t know at the time. We have never had paper or online statements in the ten year decreasing term of our insurance policy so went on the investigators say so it was going to be 57000. In the time of thinking it was the bigger sum, we sold our house cheaper and had a mortgage in principle with this amount as a deposit. We got a full apology off aviva and they paid 5000 in compensation, we escalated to the ombudsman and they have agreed with aviva basically. So we are back living with parents saving a deposit once again after aviva messed up. I just wanted to know if it’s worth taking them to court or seeing a solicitor. Any advice or knowledge would be appreciated as we are desperate to get on with our lives after the big C. Many thanks Rebecca

Please can you post on your own thread. If we answered your post on this thread its known as "thread hijacking". It would mean your subject, which is unlrelated to the subject of this thread, could take over the conversation leaving the original poster not get responses to their questions. A copy and paste of your post on a new thread avoids that.