As a Financial Advisor of 12 years it genuinely scares me when people disregard protecting their financial security.
Yes it can be expensive and reading some of the threads on this post it seems most people’s gripe.
But you have to look at the quality of the cover being provided it’s ok saying I want the cheapest and a poor advisor will give you this option it’s usually with a provider that offers limited cover and on a decreasing term basis. If looking at taking out Critical Illness Cover I would avoid like the plague limited cover and decreasing term and this is why.
I personally have £200,000 life cover Level Term and £100,000 of Critical illness cover Level Term this was taken out when I was 38 and was for 30years. I pay £89.67pm
I could have had the same amount of cover over the same term but with a provider that offered less in terms of illnesses covered and on a decreasing term basis and paid £47.34 obviously a huge difference in the monthly premium!!
However the likelihood of me dying or having a Critical Illness is in the last 8 years of my policy. Now here comes the reality between the 2 policies.
Say I die at 63 my wife receives a lump sum of £200,000 my mortgage balance at that point will be around £25,000 this allows her to clear the mortgage balance and have a stronghold on her financial future.
The cheaper policy clears the mortgage balance!
Now say I’m diagnosed with a Critical Illness 60 I owe £33,000 on my mortgage yet I still receive £100,000 on my policy this allows me to do 2 very important things. 1 clear my mortgage and 2 allow me to take as much time off work as I require to help me get back to a healthy state during which time me or my family don’t have to worry about paying the gas, electric, water, council tax, food, phone, Sky etc etc
On the cheaper policy I may not be covered but even if I am I’m paid out £33,000!!! Do I pay the mortgage off and hope we survive or do I pay the bills each month and hope that within a year I can go back to work!!
I will say this though please do not disregard your financial protection some form of cover is better than no cover at all…
