pls help re mortgage insurances

OshayAway

Ember999 wrote:

Critical Illness cover is a matter of personal choice. My advise if you want it is don't bother. It's one of the most complicated insurances you can buy and there are so many 'get out' clauses all the insurance companies use, the chances of getting a claim actually paid out is slim. So, taking into account the fact that this insurance is very, very expensive and the chances are they will not pay out in the event of a claim,

Statments like this can be less than helpful to say the least. Obviously it is a personal choice and nobody should be pressured into taking out a policy for something that they don't want. However, the facts are that the vast majority of critical illness claims are settled. Hundreds of millions of pounds of benefits are paid out every year in the UK and the statistics are published for the record. You are correct to say that it is expensive, by comparison to a life policy. Why would that be? Perhaps because the chances of claiming are much higher than for a life policy in any given term? Obviously!

So if an individual did not take out a critical illness because they were not confident in it's reliability and then became one of the 1 in 3 people that are diagnosed with cancer are could have had their mortgage paid off with a critical illness policy, instead lost their home, how would they feel then?

AndrewSmith

Footnote to go with the above,

My father aged 65, always had a fit & healthy life, farmer for years always been fit and active never smoked or drank to excess.

Diagnosed terminally ill with cancer 2 years aho, critical illness policy paid out £150,000 within 6 weeks of diagnosis at the oncologist office. Mortgage paid off and is currently on his second world cruise while he still can.

Ex professional Footballer (cannot name obviously) client of mine, had a stroke aged 35. Critical illness policy paid out £235,000 approx which he used to convert his house and car for his limited mobility.

I could go on and on. After 12 years in the industry I have lost count of the number of Critical Illness policies that I have dealt with that have actually been claimed on and paid out. I have only known 2 life insurance policies get claimed on.

Industry statistic, 5 times more critical Illness policies are claimed on that Life insurance policies.

When buying a house I consider it to be an absolutely essential part of the overall protection strategy, and recommend it every time when appropriate. Yes it is the clients choice whether it is effected however, and they must decide this for themselves.

I have not ever known a genuine claim under a critical illness policy be declined. You must take care to read meticulously what it covers (which is more than it ever used to be). Also the cost of it is indicative of the fact that it is paid out frequently.

Just because your buildings insurance doesn't cover breaking a fingernail, it doesn't stop you taking it anyway. My point is that as long as Critical Illness is taken for the correct reasons it is actually a very good and reasonably priced policy. Consider that you may be diagnosed with cancer for example, you only have to survive for 28 days following diagnosis of the listed form of cancer. If you then are fully cured say 6 months down the line and survive a normal life they don't ask you for the money back !!

Proper research and understanding of the product should be undertaken before such profound opinions be cast.

Andy

dunstonh

I have to agree with above. My experience is that all valid CI claims have paid out as they should have.

AndrewSmith

Thanks dunstonh