Currently reviewing my Life and CIC with Income Protection 10 July 2022 at 12:04PM edited 10 July 2022 at 12:04PM in Insurance & life assurance 1 reply 64 views

IAMIAM

I currently pay £700 fixed per annum for 150k Life with CIC and £3000 monthly Income Protection. Both fixed up to age 65 with L&G. Currently heading to age 40, taken out when 27. I have noticed policies are better and also premiums are way more expensive. Do I just keep them as they are, as I have also had both parental bereavements since then (cancer/heart attack). I presume with these added on, premiums will potentially go through the roof..

Weighty1

Depending on the age of your parents when they suffered these events and whether the cancer is one which is seen as significant (bowel, breast or ovarian - with only bowel being significant if you are a man) then your family history is unlikely to make a difference.

Income Protection plans are better now and the old L&G plan used to have several exclusions on it which are no longer included BUT the main premise of the cover is still the same in that it provides an income if you are signed off by the doctor so if it was me I'd not be inclined to look at this.

You could probably significantly improve on the L&G cic plan but like you say, the premiums will also be significantly higher so it depends what you main driver is.  Is it getting the best cover at any cost or is it getting "decent" cover at a low cost.  If it's the former then get looking, if it's the latter then keep what you have.  Remember, most insurers are paying out on around 93-93% of cic claims and the average length of time plans have been in force when claimed upon is something like 12-years (or thereabouts) so it stands to reason that there'd be a good chance of a claim being valid if one was made on this plan.