Life and Critical Illness Insurance

nic283

Hi All,

I would appreciate some advice regarding our insurance... I recently purchased a house with my partner for £110k. Our financial advisor recommended life and critical illness insurance with Friends Provident which will pay out this sum if one of us dies, or is diagnosed with a critical illness. He informed us that as we are in our twenties, the insurance would be dirt cheap. As it turns out, we are paying £47 a month which seems a bit expensive considering he said it would be ~£20 p/m. The FA is a friend of a friend so we just went along with his recommendation. Does this seem a tad expensive to you MSE's?

Thanks for any help,

N

dunstonh

As it turns out, we are paying £47 a month which seems a bit expensive considering he said it would be ~£20 p/m.
...
Does this seem a tad expensive to you MSE's?

It could be cheap, it could be expensive. Policies are priced on amount, term, age, occupation, health status etc. We know very little about your circumstances to say if its cheap or not really.

That said, if it was initially quoted at £20pm and then revised to £47 after underwriting then this suggests that health issues have rated your premium. So, there is little point comparing your case to someone with clean health or class 1/2 occupations.

FP havent been coming out the cheapest for some time but they do have a good service standard and underwriting process. Plus they do have a bit extra coverage on CI. So if there is only a few pence/pound in the top priced providers then its often worth looking at the one that gives best coverage

nic283

Thanks for your reply. We have a clean bill of health and I'm office based and the OH works in a lab. The £20 wasn't a quote from FP, more a guestimation from the FA.

nic283

.. and this is based on a 30 year term for our mortgage.