Critical illness cover

[carreauchompeur]

About to step back into the housing market... 190k mortgage, financial advisor quoting £66/month for life and critical illness cover. 41yo never smoked, in good health generally.

I previously had a much smaller (shared ownership) mortgage so the cover back then was far less.

Any input on how worthwhile it is? The list of conditions covered are pretty good but it’s a reasonably big chunk of money given I don’t have any dependants, etc.

[deggles]

If you genuinely have no dependants then why are they selling you life cover? Who is it benefitting? CI cover is more worthwhile as it benefits you, but only you can decide if it's worth the cost for the peace-of-mind having your mortgage/income covered.

[Craigybaby69]

Worth it for the piece of mind in my opinion...

[Craigybaby69]

Better to have it and not need it, than to need it and not have it.

[Countdown]

carreauchompeur said:

About to step back into the housing market... 190k mortgage, financial advisor quoting £66/month for life and critical illness cover. 41yo never smoked, in good health generally.

I previously had a much smaller (shared ownership) mortgage so the cover back then was far less.

Any input on how worthwhile it is? The list of conditions covered are pretty good but it’s a reasonably big chunk of money given I don’t have any dependants, etc.

Does that pay out a fixed sum, or does it just cover the outstanding mortgage (and monthly mortgage payments) ?

I think Im paying £47pcm for £175k life insurance so £66pcm for both life and critical illness seems quite good. However, as always, the devil is in the detail

[Sarnie]

CIC is for you, not others Eg dependents.

Cancer UK have the stats at every 1 in 2 people will get Cancer.

If you got ill, it would be the best money you've ever spent.

If you didn't, congratulations, you are fit and healthy!

My sister in law passed away from a brain tumour in 2017, diagnosed in 2009 and had a £240k pay out from a policy I put in place for her which allowed her clear her mortgage and focus on fighting the disease which I'm in no doubt prolonged her life by a number of years.

https://uk.virginmoneygiving.com/fundraiser-displa...

She was 38 years old when she passed. These things don't just happen to "other" people.

Worth every penny in my own personal and professional opinion.

[Sarnie]

Countdown said:

Does that pay out a fixed sum, or does it just cover the outstanding mortgage (and monthly mortgage payments) ?

I think Im paying £47pcm for £175k life insurance so £66pcm for both life and critical illness seems quite good. However, as always, the devil is in the detail

You cannot ever compare what you have/pay with what someone else has/pays..........different ages, sexes, smoking status, sums assured, medical profiles etc etc...

[TwigtheWonderkid]

Sarnie said:

You cannot ever compare what you have/pay with what someone else has/pays..........different ages, sexes, smoking status, sums assured, medical profiles etc etc...

I don't think they can use your sex as an underwriting factor anymore.

[dalenorth]

Drop me a pm if you’d like any quote comparisons as we have a Phr deal which will be less expensive?

[rossub]

I thought I needed Critical Illness cover, but ended up getting income protection instead (already had life cover).

£53 per month for £2k per month tax free up to age 60.

Less than I earn, but if I’m that badly disabled to not be able to work, I’m not going to need much disposable income either.

[Chilly for June]

TwigtheWonderkid said:

Sarnie said:

You cannot ever compare what you have/pay with what someone else has/pays..........different ages, sexes, smoking status, sums assured, medical profiles etc etc...

I don't think they can use your sex as an underwriting factor anymore.

If your female and your mum/sister has had breast cancer I would be certain it will make a difference to your underwriting decision.

[carreauchompeur]

Great thanks, it does seem worthwhile but it’s a chunk I hadn’t anticipated. That policy I put the quote up for clears the mortgage, therefore it’s decreasing over the years.

1 in 2? Yeeesh

[Craigybaby69]

Chilly for June said:

TwigtheWonderkid said:

Sarnie said:

You cannot ever compare what you have/pay with what someone else has/pays..........different ages, sexes, smoking status, sums assured, medical profiles etc etc...

I don't think they can use your sex as an underwriting factor anymore.

If your female and your mum/sister has had breast cancer I would be certain it will make a difference to your underwriting decision.

It might not, depends on the age of both the applicant and relative...but it might...

[LeadFarmer]

If you more worried about leaving an unpaid mortgage behind if you die, life assurance can sort that, along with any payouts your employer might give your NOK after your death. My employer pays a 'death in service' payment to my wife if I die before I retire.

If you want extra money whilst your alive and after diagnosis, then I guess CIC is what you want.

Personally I/we don't have CIC, but we do have good Life Assurance cover.

Everything is a gamble, even for the insurance companies.

[Sarnie]

LeadFarmer said:

If you more worried about leaving an unpaid mortgage behind if you die, life assurance can sort that, along with any payouts your employer might give your NOK after your death. My employer pays a 'death in service' payment to my wife if I die before I retire.

If you want extra money whilst your alive and after diagnosis, then I guess CIC is what you want.

Personally I/we don't have CIC, but we do have good Life Assurance cover.

Everything is a gamble, even for the insurance companies.

People are most afraid of dying, but statistically, it's the least likely thing to happen to you.

This is why Life Only premiums are so cheap...........

[Groat]

Sarnie said:

People are most afraid of dying, but statistically it's the least likely thing to happen to you.

I don't know where you heard that but, trust me, it couldn't be more wrong.

Death is an absolute certainty to happen to you. One hundred per cent certainty that one hundred per cent of people will die.

[Sarnie]

Groat said:

I don't know where you heard that but, trust me, it couldn't be more wrong.

Death is an absolute certainty to happen to you. One hundred per cent certainty that one hundred per cent of people will die.

As in, within the prescribed term of the policy, which is usually in line with the mortgage term..........

If you are 40, taking a 25 year mortgage to the age of 65, you are significantly more likely to suffer a Critical Illness than you are to die.......thats a simple fact.......reflected by the level of premiums offered by providers.

I obviously didn't say that none of us were ever going to die, ever

[Craigybaby69]

1 in 2 will get some form of cancer during their lives (so hit and miss whether it will be during the time you've insured yourself for), but a lot of those will be less advanced cases and most insurers don't pay out on CI for less advanced cancer cases.
Worth having though, particularly when you've got liabilities.

[CoolHands]

The 1 in 2 get cancer just sounds like salesmen talk to me

But £66 month is much cheaper than I thought critical illness cover would be.

[dingg]

I never bothered with cic as my emloyer had a 50k payment if diagnosed with cancer, stroke, heart attack or heart bypass, also a 100k payment if I snuffed it whilst in service.
I'm 60 soon and retired and always been a bit of a gambler, reckon I've saved a fair whack over the years by not worrying too much about my health.