Critical illness cover

[Skiddybadoo]

Guys, I have a 100% mortgage and am financially strangled.  What's worse is that I am paying a huge amount in critical illness cover (£126 per month: family histrory wouldn't be great).  Is this normal?  I'm thinking of ditching it completely.  Mortgage advisor says I have the rolls royce of cover, but is it even necessary?  Something's gotta give soon!

Thanks.

[stephenite]

If the family history isn't great I'd hang onto it if I were you. Know a guy that was in a similair position, ditched the cover and two years later he fell quite seriously ill, only for some local fundraising he managed to hang onto the house.
If the worst happens you'll have medical bills and other such stuff to worry about before you even start thinking of the mortgage.

[Tyrones own]

  If I'm reading it right Stephenite I think as things are he's maybe looking at losing the house anyway, I reckon do what you have to do
right now to hang on even if it means ditching the insurance, it's alright listening to these so called mortgage experts telling you
that you've a great thing going when it's not him trying to make the payments, blood, stone and all that..........
Try to hang in there by whatever means possible, things will eventually turn around and who knows maybe in a couple of years
you can throw some kind of cover over yourself again.

[The Gs Man]

If you have the "Rolls Royce" of cover, surely you could find something cheaper? e.g. a cover that reduces as per your mortgage reducing?  You should try comparison sites for quotes.  I could bet you 2 quid that you will something much, much cheaper.

[the Deel Rover]

Guys, I have a 100% mortgage and am financially strangled.  What's worse is that I am paying a huge amount in critical illness cover (£126 per month: family histrory wouldn't be great).  Is this normal?  I'm thinking of ditching it completely. Mortgage advisor says I have the rolls oyce of cover, but is it even necessary?  Something's gotta give soon!

Thanks.

ye and i'd say he's getting the rolls royce of commission. 126 pounds seems a crazy amount for just critical ilnness , i know it depends on the amount of your Mortgage,  your age, whether you smoke or drink and family medical history but its still seems exteme.Like the g mans say shop around and i'm sure you will find something a lot cheaper.I Have critical illness cover not for my whole mortgage but for a % of it and its only €14 along with Life insurance thats costing €16.

[Donagh]

Think mine is about £20 per month (along with life). I have good cover through work as well though.

[snatter]

From Martin Lewis website

http://www.moneysavingexpert.com/mortgages/cheaper-life-insurance

I'm not a big fan of critical illness policies. Many believe they will "pay out if you get a serious illness and can't work". Yet that isn't true. Critical illness policies pay out a lump sum if you get a specific critical illness as defined by the terms of the policy, which can often be changed; for example losing one leg isn't critical, but two legs is! So don't think "I'm covered for cancer"; most policies only cover a limited range of cancers.

Picking a good critical illness policy would take a doctor and financial nerd combined.
So I suggest you're better off getting
1. mortgage term cover
2. an income protection policy - which does just that - protect your income from a range of eventualities.

Loads of good advice on that link on getting the best prices for both recommended insurances.

[snatter]

Yep, Donagh's right - check that you aren't already covered through a work policy.
Many companies have life assurance included in their pension plans, eg offering a lump sum of 4 times annual salary should you die, in addition to an annual pension.

Martin Lewis advises that 4 times salary may fall short of whats needed if you have a family, so you may want an additonal private poicy to back up any work policy that you may have.

[Skiddybadoo]

Thanks lads for all the advice.  I'm meeting with my bank on Tuesday (even they were surprised at the amount).  An extra bit of cash flow would make a serious difference, though both me and the wife in reasonably stable jobs.  I'm late 30s, don't drink or smoke (neither does the wife) but my family history isn't good: we all go pretty early from heart attacks.  Fcuked about in my 20s and early 30s then got married and bought a house at the peak time.

Anyways, really apreciate the advice.  Will look to reducing it from this 'rolls royce' policy first off and then decide whether any reduction should be kept at all until the heads out of the water a bit more.

Cheers.

[Boycey]

Has anyone any more insight into critical illness cover since this thread was last active??

I'm a lazy sod and just stick with things once they are done, I took out Mortgage life insurance and critical illness cover when I bought a house 6/7 years ago. In a recent bout of conscience I decided to see how much I can save myself a month between Sky/Phone/insurance policies etc. A quick glance at my bank statement last month shows me I'm paying over €100 a month for both, with approx 2/3 of it on the critical illness cover.

The mortgage insurance is a no brainer but I do believe I can get it cheaper but the other one is bugging me, is it worthwhile? am I paying too much for it? I think it provides for €80k payout but seems to expire at the end of my mortage period meaning it'll be gone when I'm 60.

[T Fearon]

Critical illness cover is like car insurance,you grudgingly pay it but hope you never need it.

[pullhard]

You'll be able to find a cheaper policy, but the definitions within the policy might not be so good, you can read the key feature doc's on the providers website, so the chances of getting a payout are reduced. That said there have been some new products developed recently which may provide better and more flexible cover, Pru Vitality comes to mind.

What Tony says is correct, you need it if you have a mortgage.

Income protection is another beauty for self employed and single earning families.

[seafoid]

Has anyone any more insight into critical illness cover since this thread was last active??

I'm a lazy sod and just stick with things once they are done, I took out Mortgage life insurance and critical illness cover when I bought a house 6/7 years ago. In a recent bout of conscience I decided to see how much I can save myself a month between Sky/Phone/insurance policies etc. A quick glance at my bank statement last month shows me I'm paying over €100 a month for both, with approx 2/3 of it on the critical illness cover.

The mortgage insurance is a no brainer but I do believe I can get it cheaper but the other one is bugging me, is it worthwhile? am I paying too much for it? I think it provides for €80k payout but seems to expire at the end of my mortage period meaning it'll be gone when I'm 60.

I think Critical illness is often a rip off.
Something like 85% of claims are from cancer , heart attack and stroke and the other illnesses are added on for show.
Commission is high and benefit definitions are always changing.
The product only works as long as illnesses aren't detected in sufficient numbers to render it unprofitable.
There have been  loads of legal problems associated with payouts. 
I wouldn't buy it. 

[seafoid]

Has anyone any more insight into critical illness cover since this thread was last active??

I'm a lazy sod and just stick with things once they are done, I took out Mortgage life insurance and critical illness cover when I bought a house 6/7 years ago. In a recent bout of conscience I decided to see how much I can save myself a month between Sky/Phone/insurance policies etc. A quick glance at my bank statement last month shows me I'm paying over €100 a month for both, with approx 2/3 of it on the critical illness cover.

The mortgage insurance is a no brainer but I do believe I can get it cheaper but the other one is bugging me, is it worthwhile? am I paying too much for it? I think it provides for €80k payout but seems to expire at the end of my mortage period meaning it'll be gone when I'm 60.

70 a month is 840 a year- you could end up paying 20K for 80k cover in total  - I wonder how much of that was commission.
It sounds quite expensive.   

[illdecide]

I'm not trying to help sell anything but if I can help a fellow Gael I will. My sister has been selling cover and insurances for donkeys years and if you were looking some professional advice I can pm her number to you...(not to try and get a sale but just some free advice that can help you out).