Permanent Health Insurance or Critical Illness?

M0neysav3r

Hi

Please correct me i'f i'm wrong but from what I gather Permanent Health Insurance is a better policy than Critical Illness and will pay out for whatever reason you're medically deemed unable to work (assuming it isn't an excluded condition) so for a minor ilness it would pay out whilst you're unable to work and stop when you go back to work and if more a more serious condition it would pay out continually until the end of it's term (retirement?)

I have had a quotation but to me it seems expensive, we only need it to cover my husband as he is the main breadwinner and could not survive if he was unable to work but could manage if it was me.

He is 34 non smoker and the monthly benefit we need to cover is £900 - The quote from Pioneer was £38pm which increases to over £100pm when he's nearing retirement. This was based on a 1st day benefit too as he doesn't have any sick pay with his work.

Does that seem right about right?

I like the sound of the £38pm but not keen on the £100pm!!!

Thanks

dunstonh

I like the sound of the £38pm but not keen on the £100pm!!!

The 100pm is assuming a certain level of indexation. In real terms it should more or less still cost £38.

CI is different to PHI. One does not replace the other although if you had to choose, PHI should be the priority.

Is the Pioneer plan budget, standard or comprehensive?
Have you got the quote based on the correct class of occupation?

M0neysav3r

I'm waiting for an email to confirm the quotation, a cover level wasn't mentioned (I didn't know there were levels) but hopefully the email will tell me more.

If you have PHI why would you need CI too? I understnad that CI would pay out a lump sum so pay off your mortgage, but if we had PHI and he was critically ill the mortgage would still get paid but monthly instead of lump sum is that right??

Thanks for your advice - Much appreciated