life insurance

wedrum

wedrum

wedrum

Permabanned
Joined
11 Aug 2016
Posts
5,553
Location
Cheshire
just looking into this online.

LVE for £150000 cover is £9.14 a month.

not sure which cover i need though, i am looking at covering for 20 years.
i ticked the critical illness cover and the premium shot upto £50 a month.

this is what confused me, if i die in the 20 years from any illness or accident would my family get the £150000, or do you need the critical illness cover too to cover any type of death ?
 
Typically, it would be first event.

So, if you develop a critical illness (As defined by the T&Cs - it's worth a check. Some won't pay out on single limb loss!) the policy will pay out and then cease.

If it's just die to win (Which is likely to include terminal illness) then it will only pay on death - or if within the next 12 months (Terminal) as agreed by a doctor. If you live you don't have to give it back!

If you're doing it yourself, I would also suggest having the policy written in a simple trust. If you die the trust will pay out the money straight away without having to wait for Probate.

This type of policy is unlikely to include accident cover - other than the premiums being paid (Waiver of premium) It could be included but would be an extra.
 
Last edited:
The only reason to select decreasing cover to is to match to a decreasing liability (such as a repayment mortgage). If you're more about protecting family than covering debt you should consider level or increasing, or level with options to increase in the future.
 
went with Legal and General.
premium increased to £15 a month with my anxiety issues.

got to be honest about these things.

£15 a month not too bad i dont think for £150000 pver 20 years.
 
Currently with Legal and General on a decreasing term plan.

Paying over the odds but it was setup when we got the mortgage I am going to move away from Legal and General on a level term with critical illness plan.

Beagle Street is one I spotted.
 
I'm with Aviva, £5/month for just over £100k over 30 years, decreasing in line with my mortgage. That's with a 20% discount as I have my car insurance with them as well, not sure if that discount stops if I move my car insurance tbh, but I can always shop around again if it does :p
 
Just as a heads up. I believe Legal & General Critical Illness doesn't pay on single limb loss.

It's worth checking the definitions before signing up for Critical Illness.
 
EddScott said:
Just as a heads up. I believe Legal & General Critical Illness doesn't pay on single limb loss.

It's worth checking the definitions before signing up for Critical Illness.
Click to expand...

Yes it does.

A lot don't. L&G are one of the few who do. Covered under the "Loss of Hand or Foot" definition.

However you should be more concerned with the top 5 claims rather than obscure things that get claimed on <10 times a year in the whole industry....

Top 5 are:

Cancer
MS
Heart Attack
Stroke
Terminal Illness

and importantly check the total and permanent disability as well.

Definitions are key - Premiums are NOT. No point paying £40 for something which is less likely to pay out when you can pay £60 you have a better chance of getting a pay out on.

Even better still - get some PHI (as well as CIC if you can afford it).
 
BDEE said:
Definitions are key - Premiums are NOT. No point paying £40 for something which is less likely to pay out when you can pay £60 you have a better chance of getting a pay out on.
Click to expand...

Also worth pointing out that a higher premium doesn't necessarily mean a better product. No point paying £60 for something which is less likely to pay out when you can pay £20 you have a better chance of getting a pay out on.
 
You must log in or register to reply here.
Back
Top Bottom