Combined Life/Critical Insurance

confusedandpuzzled

Hi, new member so apologies if covered b4. Got life/critical insurance cover for me (46) and her (41). Just had renewal notice for me, gone up to £82/month - hers due next month expect that will be about £35/month. Sum insured is £74K decreasing. Every1 says crazy to pay for CI as so many get out clauses, what you reckon ?. Wud I be better cancel and get just life cover ?

dunstonh

Wud I be better cancel and get just life cover ?

Sounds like you have a yearly renewable term assurance. I dislike these. Cheap in your 20s but you really start to increase in your 30s and significantly in your 40s. Its a false economy.

A guranteed level premium policy is better value if held to the end.

Every1 says crazy to pay for CI as so many get out clauses

They dont know what they are talking about. Statistically, CI is only just behind life assurance in odds of having a successful claim before retirement and way ahead of other insurances like mortgage payment protection.

Some dodgy reporting by BBC Watchdog has cemented that mindset into peoples minds. Typically 80% of CI claims are paid out successfully. 15% are due to claims being made but that thing not covered and 5% due to non-disclosure. You never hear anything about those 80% paid out.

In recent years, I have had more clients claim on CI than life cover. Not one CI claim has been rejected.