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Critical illness cover -

is it worth it?

Du and I can get life cover with everything we need for less than £10 a month, but if we add critical illness cover, it jumps to stupid prices ranging from £60 to £120!

do we really need it? Does it ever pay out?

Comments

  • dunstonh
    dunstonh Posts: 120,896 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    is it worth it?

    It is if you have a claimable event.
    Du and I can get life cover with everything we need for less than £10 a month, but if we add critical illness cover, it jumps to stupid prices ranging from £60 to £120!

    Premiums reflect the chances of claiming.
    do we really need it?

    Depends if you claim on it or not.
    Does it ever pay out?

    Over 80% of claims pay out successfully. If you remove the claims which are for things not covered by the policy then it typically has a 95%+ success rate on claims. Statistically, the odds are 1 in 6 suffering a claimable event before retirement.

    Behind life assurance, it has one of the highest claims and payout rates pro rata
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    You wouldn't think £60 a month was 'stupid' if you had to claim.
  • What you have got to ask yourself is what would you do if either of you were diagnosed with a Critical Illness?? What Would you Want to happen?

    These policies are very good at paying out and different companies boast different figures however most average between 85-95% payout.

    Yes £60-£120 per month may SEEM alot, but how much is it worth in the long run if either of you were diagnosed.....
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