Critical illness cover

**DimPrawn** · 9 March 2006, 14:20

Never bothered with it. Seems very expensive last time I got quotes (years ago).

I have an agreement with the wife. If anything happens to me, she'll finish me off and make it look like an accident. Much cheaper option.

**SAPBoy** · 9 March 2006, 14:25

Not sure I trust mine enough for that sort of deal. She might get tempted a bit early and run off with the cash.

**DaveB** · 9 March 2006, 15:28

I've got CI cover, £80 a month guarentees £2500 a month for as long as I am unable to work, for life if nessesary. If I go back to work it stops but I can claim it again in the future if I need to. Premium is guaranteed as well, will never go up even if I claim on it.

Not as much as I earn of course, but makes sure the bills will be paid etc.

Some people may think it' s not worth it for the cost but I have family etc to consider and a guaranteed income if I cant work if something that I think is worth the money.

**SAPBoy** · 9 March 2006, 15:39

Deferred payout

Thanks,

How long do you have to be off for before they start paying?
Also, who are you with?

**DaveB** · 9 March 2006, 15:45

Mine is 6 months. Could have had 3 or even 1 but the cost goes up exponentially.....

I figure after 6 months if your still not working it's prolly permanent. Up till then I'll have savings and negotiate with my mortgage lender etc.

I'm with legal and general. Go talk to an IFA about it. They can point you to a plan that suits you far better than trying to talk to the banks directly. All they want is to sell you one that costs a fortune, only and only pays for 12 months tops.

**SAPBoy** · 9 March 2006, 15:50

The quotes I had were based on a three month payout and for almost my full earnings which would explain the high quotes. I agree with your approach and will do likewise.

Thanks DaveB.

**ASB** · 9 March 2006, 16:38

Originally posted by DaveB

I've got CI cover, £80 a month guarentees £2500 a month for as long as I am unable to work, for life if nessesary. If I go back to work it stops but I can claim it again in the future if I need to. Premium is guaranteed as well, will never go up even if I claim on it.

Not as much as I earn of course, but makes sure the bills will be paid etc.

Some people may think it' s not worth it for the cost but I have family etc to consider and a guaranteed income if I cant work if something that I think is worth the money.

But that premium rate is probably for unable to do ANY work. Rather than work in your chosen field. So if you can still flip a burger....

If it is for unable to work in your field that would be an attractive premium.

**hyperD** · 9 March 2006, 17:43

Originally posted by DaveB

I've got CI cover, £80 a month guarentees £2500 a month for as long as I am unable to work, for life if nessesary. If I go back to work it stops but I can claim it again in the future if I need to. Premium is guaranteed as well, will never go up even if I claim on it.

Not as much as I earn of course, but makes sure the bills will be paid etc.

Some people may think it' s not worth it for the cost but I have family etc to consider and a guaranteed income if I cant work if something that I think is worth the money.

I would look at the T&Cs for this DaveB as they may not be as good as it sounds. As ASB says, you pretty well have to be a vegetable before they pay it for that long.

There was a case of a BA pilot who lost their job due to stress or some other condition and the CI kicked in. However, after 12 months they stopped paying it (went to court) as they claimed the pilot could perform other work duties other than flying and hence the cover was now void.

**boredsenseless** · 10 March 2006, 09:17

If you are taking out one of these remember this.

YOu need a clause that says 'unable to return to own occupation'.

Similar or any occupation is worthless.

Look at it this way (and I'll use the figures above to illustrate)

You get injured from your £7000 month contract and can't work. but you've paid £80 to cover yourself for £2500.

If you have own occupation insurance you would have to be able to go back to your own job before it stopped paying.

HOwever if you had similar occupation you could end up in some numpty job and losing the £2500, for instance a work from home VB code monkey on £15K a year. Its similar to what you used to do so it counts as valid employment.

If its any it gets even worse, since as soon as you can flip a burger or push a brush you've lost your payout.

Own occupation is really expensive compared to the other two but its worth it. Like any insurance though, only take out cover for what you need not to replace what you currently get. They all have payout clauses anyway. Which are between 50-66% of your average earnings. So if you insure your full earnings you will still only get 66% back at best. however if you insured 66% of your earnings you'd get the whole amount insured i.e. not lost premiums.

The health exclusions on these things are pretty large as well and any pre-existing conditions are exempt. For example if you went to the doctors 5 years ago with a lump thinking I'll just get it checked, and then today you take out the insurance, if in 5 years you get cancer, and you hadn't told the insurance company that you had a check-up for it previously I've heard of cases where they refused payment as it was a undisclosed risk. And the courts upheld it.

Critical illness cover