Life insurance and Critical illness question

lauren1983

Hi,

I have life insurance and critcal illness with the same company.

But i wonder if i am doing the right thing?

If i were to get a critical illness they would pay out and the policy would end. But say i died a not long after there would be no payout unless i took another policy out!!

But i was wondering whther it would be better for me to take each policy out seperatley so they would each have thier own use if you understand what i mean !!

I hope im making sense lol

any thoughs would be great

Thanks

TEDDYRUKSPIN

I am not trying to be rude or sarcastic but Lauren you have actually answered your own question.

If you wanted separate CI and separate Life you can do this. Obviously your existing cover will cease which ever claim you make first, hence, first event.

moonlightandjj

Hi
Sounds daft but even if they are with the same company are they separate policies? or are they a All -in-One policy.

I have two policies one is CI and one is LI although they are with the same company they are totally different policies.

If they are a All-in-One then I would cjeck with your insurancer on the situation you have mentioned regarding getting a critical illness and then dying not long after. They might pay out twice if both causes are not connected. Or one may invalidate the other, or they might pay out on both. Also read the small print on what CI really covers lots are very funny on what "type" of illnessess they pay out on.

BeeUK

Lauren,

It all depends on how the policy is set up...

If you took out a "Life with Critical Illness" benefit on the policy, whichever of thos happens first will cancel the other...(get a CI, pays out, then die, no pay out)

But it is possible to have seperate Life and CI benefits set up on the same contract, it's like having 2 policies, just wrapped up under 1...if you see what I mean! These will potentially pay out on both a Critical Illness event and a later Death event.

You should check how your current contract is set up...obviously it is cheaper to have the "Life withc CI" benefit as oppose to the 2 seperate benefits.

Hope this makes sense!
Bee