Life Insurance VS Critical Illness

[Lloyd90]

As our house is going through we are having to look into the old life insurances. 

Had anyone ever assessed the ol life insurance lump sum pay out on death VS the critical illness cover? 

The benefit being you get the money but don’t have to actually die! Apparently good as having a critical illness is obviously life changing. I know some people may re-assess and totally change their life after such an illness. 

We are currently weighing up. 

[Wb123]

A good few colleagues have income protection policies although there is huge range in cost and cover. Some only pay if you cannot work at all, others that will pay if you cannot work in your profession, or cannot find work in that line. Apparently premiums are pretty exhorbitant unless you go for a delayed start needing 6 or 12 months unemployment first. 

 

An aunt was essentially retired off on a better net salary than i will likely ever see by such a policy at 30 after rheumatoid knackered her hands.

[Lloyd90]

2 hours ago, Wb123 said:

A good few colleagues have income protection policies although there is huge range in cost and cover. Some only pay if you cannot work at all, others that will pay if you cannot work in your profession, or cannot find work in that line. Apparently premiums are pretty exhorbitant unless you go for a delayed start needing 6 or 12 months unemployment first. 

 

An aunt was essentially retired off on a better net salary than i will likely ever see by such a policy at 30 after rheumatoid knackered her hands.

 

I think that may be the issue mate - will all depend what is covered! 

[Mice!]

my cousin got cancer, thankfully recovered but got her mortgage paid, other things to look at are your pensions do they not have a pay out in case of death?

[nobbyathome]

I have just had the same problem as I am 60 the premiums are not that cheap and will only cover me with critical illness etc until I am 70 the total amount paid out if I get ill is only 4 times what I am paying over 10 years if I just die the payout is over 20 times that if I just take the death one  so I am not going to bother save the money I will pay into my pension and if I get cancer/stroke etc the mrs will sell the house and downsize  and to be honest even with loads of money she would do that anyway

[team tractor]

I’ve just got life insurance. It’s a gamble I know but it’s like phones. My phone is £16 a month insurance. If it lasts 5 months and I break a screen it’s cheaper without insurance.

when I broke my leg the insurance would of helped but it was £15 a month extra and I’m 11 years in. I was off work for 5 weeks so still better off.  It’s all a gamble. Ok I did work with my frame fitted for 5 months lol. 

 

 

 

 

Edited January 27, 2018 by team tractor

[loriusgarrulus]

You have to be careful with critical illness insurance as some only cover specified conditions. Hard luck if you get something not covered.

[JohnfromUK]

These covers can be one of the less well publicised benefits of being an employee.

I was an employee for most of my 45+ years working life, and in my final employment (over 20 years) I had both life cover (4x annual salary) and critical illness cover (80% of salary plus 100% pension contributions paid up until normal retirement date) provided (at no cost to me) as part of my employment package.  These are valuable benefits and often overlooked when weighing up remuneration packages.  If you can find employment offering these - it is a very valuable part of the overall package.

In my time (I'm now retired) I didn't have to claim any illness cover - and indeed it was rare, but unfortunately, there were a couple of deaths in service (illnesses) and long term disabilities (also illnesses) and the benefits to the families involved were very helpful at understandably difficult times.

It was one of the big 'losses' when I retired

Edited January 27, 2018 by JohnfromUK