Life insurance vs./and/or critical illness cover

Weighty1

Burnsie1983 said:

dunstonh said:

Life insurance is cheap as chips, but add in >£60+ CI, then goes up quickely.

It would do.  You are more likely to claim on CIC than life assurance.

But then there is "income protection insurance"...which I can get for cheaper...but it looks like the only diference is it's not a lump sum! 

Depends on what you mean by income protection.
There is the PPI version of income protection which is pretty useless much of the time.
Then there is the PHI version of income protection which is much better but the policies can be pretty much placed into budget, standard and comprehensive levels.  Those are not official classifications but you can effectively split them that way.  Budget end ones are nearly as useless as PPI.   Standard and comprehensive levels are much more likely to be suitable.

I don't suppose you have time to expand on why you believe some of these are useless? And also what PHI means 😀

PHI stands for Permanent Health Insurance.  Income Protection was originally called this because once it's in force it is permanently binding on the insurance company who can't cancel just because, for example, you become a poor risk.  I'm not sure why the name persists on here as literally NO ONE out of this forum ever refers to it as PHI.  It is Income Protection, that's it.

This is between, in my opinion, than critical illness cover (CIC) because it covers ANY illness which prevents you from working, not just a list of specific conditions like a CIC does.  

There's also a far higher potential payout from type of policy than an equivalently priced CIC in most cases because if you multiply the monthly payout by 12 and then multiply that by the number of years until retirement it's likely to be a pretty substantial sum.  Also, even if you had a CIC policy insuring you for your full mortgage, how do you pay your gas, electric, water, netflix, put food on the table, keep your car running, go to the cinema, buy clothes etc etc etc.  With income protection you can typically insure up to around 60% of your gross earnings which would/should provide enough to cover the mortgage payments AND cover most, if not all, bills 

MyRealNameToo

Weighty1 said:

Burnsie1983 said:

dunstonh said:

Life insurance is cheap as chips, but add in >£60+ CI, then goes up quickely.

It would do.  You are more likely to claim on CIC than life assurance.

But then there is "income protection insurance"...which I can get for cheaper...but it looks like the only diference is it's not a lump sum! 

Depends on what you mean by income protection.
There is the PPI version of income protection which is pretty useless much of the time.
Then there is the PHI version of income protection which is much better but the policies can be pretty much placed into budget, standard and comprehensive levels.  Those are not official classifications but you can effectively split them that way.  Budget end ones are nearly as useless as PPI.   Standard and comprehensive levels are much more likely to be suitable.

I don't suppose you have time to expand on why you believe some of these are useless? And also what PHI means 😀

PHI stands for Permanent Health Insurance.  Income Protection was originally called this because once it's in force it is permanently binding on the insurance company who can't cancel just because, for example, you become a poor risk.  I'm not sure why the name persists on here as literally NO ONE out of this forum ever refers to it as PHI.  It is Income Protection, that's it.

Namely because ASU/PPI is also sold under the title of Income Protection these days and need to differentiate the two as they are materially different products even though at the highest level they both provide payments if you are too ill/injured to work. 

Weighty1

MyRealNameToo said:

Weighty1 said:

Burnsie1983 said:

dunstonh said:

Life insurance is cheap as chips, but add in >£60+ CI, then goes up quickely.

It would do.  You are more likely to claim on CIC than life assurance.

But then there is "income protection insurance"...which I can get for cheaper...but it looks like the only diference is it's not a lump sum! 

Depends on what you mean by income protection.
There is the PPI version of income protection which is pretty useless much of the time.
Then there is the PHI version of income protection which is much better but the policies can be pretty much placed into budget, standard and comprehensive levels.  Those are not official classifications but you can effectively split them that way.  Budget end ones are nearly as useless as PPI.   Standard and comprehensive levels are much more likely to be suitable.

I don't suppose you have time to expand on why you believe some of these are useless? And also what PHI means 😀

PHI stands for Permanent Health Insurance.  Income Protection was originally called this because once it's in force it is permanently binding on the insurance company who can't cancel just because, for example, you become a poor risk.  I'm not sure why the name persists on here as literally NO ONE out of this forum ever refers to it as PHI.  It is Income Protection, that's it.

Namely because ASU/PPI is also sold under the title of Income Protection these days and need to differentiate the two as they are materially different products even though at the highest level they both provide payments if you are too ill/injured to work. 

I totally understand that by why use a phrase that not a sinngle life insurance provider uses any more?  Use it's proper name and then distinguish it from Short term IP, ASU, MPPI due an explanation of how it differs.  Using PHI helps no one.

dunstonh

I totally understand that by why use a phrase that not a sinngle life insurance provider uses any more?

Yet, when searching for permanent health insurance, you get many sites still making reference to it.

MyRealNameToo

Weighty1 said:

MyRealNameToo said:

Weighty1 said:

Burnsie1983 said:

dunstonh said:

Life insurance is cheap as chips, but add in >£60+ CI, then goes up quickely.

It would do.  You are more likely to claim on CIC than life assurance.

But then there is "income protection insurance"...which I can get for cheaper...but it looks like the only diference is it's not a lump sum! 

Depends on what you mean by income protection.
There is the PPI version of income protection which is pretty useless much of the time.
Then there is the PHI version of income protection which is much better but the policies can be pretty much placed into budget, standard and comprehensive levels.  Those are not official classifications but you can effectively split them that way.  Budget end ones are nearly as useless as PPI.   Standard and comprehensive levels are much more likely to be suitable.

I don't suppose you have time to expand on why you believe some of these are useless? And also what PHI means 😀

PHI stands for Permanent Health Insurance.  Income Protection was originally called this because once it's in force it is permanently binding on the insurance company who can't cancel just because, for example, you become a poor risk.  I'm not sure why the name persists on here as literally NO ONE out of this forum ever refers to it as PHI.  It is Income Protection, that's it.

Namely because ASU/PPI is also sold under the title of Income Protection these days and need to differentiate the two as they are materially different products even though at the highest level they both provide payments if you are too ill/injured to work. 

I totally understand that by why use a phrase that not a sinngle life insurance provider uses any more?  Use it's proper name and then distinguish it from Short term IP, ASU, MPPI due an explanation of how it differs.  Using PHI helps no one.

A google shows some are still using the term, for example https://yulife.com/blog/permanent-health-insurance-vs-income-protection/ and https://www.drewberryinsurance.co.uk/income-protection-insurance/permanent-health-insurance both examples in the last 12 months of intermediaries using the PHI term in online marketing. The former is amusing given its comparing PHI against IP 

Plenty more articles but most are undated so can't say if they were published last week or a decade ago.