Life, critical illness and unemployment insurance help please

[RazorSHarp 10]

Critical illness insurance has "evolved" from years ago.

 

I think you'll find that there are also more things covered aswell, the evolution of these policies reflects on how new and revolutionary they are in insurance terms. Some policy exclusions have been added to reflect the changes in medical advancement and others to reflect the amount of fraudulant claims.

 

Critical illness insurance isn't cover for an illness that will kill you within days/weeks/months, its for illness that will force you out of work or serious incapacitate you. If you do die during a claim period the policy will usually pay out under the death benefit.

 

For the extra £30 or £40 a month these policies will cost, the benefits, if needed, and succesfully claimed against, are worth it.

[Chopsie 10]

Having sold these policies for a living until a few months ago, I firmly believe everyone should have critical illness & life cover, but be fully aware of the exclusions with any policy you take out. The Motley Fool website (http://www.fool.co.uk) is an excellent comparison site for both life & CI policies (a combined policy is usually cheaper) There is rarely, if ever, an investment element to any policy that gives critical illness cover, which means there is only a payout if you make a claim. There are two types of policy - guaranteed and reviewable. Guaranteed ones are a set premium for the whole term (usually more expensive at the outset, but will never go up in price) reviewable ones are reviewed at set points (eg every 5 years) so may go up periodically depending on claims/insurance rates etc. These are usually cheaper to start with though because of this. As for payment protection, an Income Protection policy would pay you out a monthly premium until a set age specified at the policy start date (eg 60 or 65) in the event that you are unable to work because of accident or sickness only. They are usually more suitable for s/emp people, but claiming can be a minefield - again, look into any policy you take carefully so you are aware of it's limitations. The protection usually sold by mortgage lenders pays your mortgage payment only, but IP would pay you an amount to cover all your living expenses. You can defer it so it would start once your employer sick pay finished, or claim both at the same time, and to either top up any state benefits you are entitled to, or pay out in addition.

 

Essentially, there's a lot to know and be aware of - if you are unsure, find a good Independent Financial Advisor. They should not charge you for their advice, as they will get commission from the life company when you take out the policy s/he recommends.

[wondertec 10]

If you are on a fixed term mortgage, can you cancel or change your insurance policies? No-one told us you can and we just keep paying when we could be shopping around for cheaper.

[Lancs_Lad 10]

I think you'll find that there are also more things covered aswell, the evolution of these policies reflects on how new and revolutionary they are in insurance terms. Some policy exclusions have been added to reflect the changes in medical advancement and others to reflect the amount of fraudulant claims.

 

Critical illness insurance isn't cover for an illness that will kill you within days/weeks/months, its for illness that will force you out of work or serious incapacitate you. If you do die during a claim period the policy will usually pay out under the death benefit.

 

For the extra £30 or £40 a month these policies will cost, the benefits, if needed, and succesfully claimed against, are worth it.

 

 

I am not totally against these policies as they are worth the fees if you need to claim and seem to be a waste of money if you don't claim.

 

SOME of the insurance companies that provide this type of cover have historically used every trick in the book to avoid paying out which is the last thing you need if you have been diagnosed with an illness you thought you were covered for and then find the company squirming to pay out while you put your life on hold to fight your illness. Watchdog or Trevor McDonald highlighted some of these companies a couple of years ago and it was heartbreaking what they put some families through that were legitimate claimants. 1 in 5 claims for this type of insurance get rejected which to me speaks for itself.

 

Like most things it requiresa fair amount of research before making a choice.

 

http://www.thisismoney.co.uk/insurance/article.html?in_article_id=407881&in_page_id=4

[kevvy 12]

We've had Critical illness cover since we took our Mortgage out. I've since had 2 Heart Attacks and they refused to pay out, "Not Critical" enough ????

[selphie 10]

TBH you shouldn't be taking advice off anyone who isn't authorised and regulated under the FSA. These type of insurance policies are often tailored to suit the individual. Your mortgage lender will require you to have life insurance as part of your mortgage aggreement, any other cover is optional. I would recommend you see a few financial advisors, discuss what you need and want and see what they have to offer. Your bank will offer this service, as will your mortgage company. There are also other places such as Legal and General, Prudential, Saga (depending on your age), AXA, Aviva and RSA to name but a few. Hope this helps x