Life insurance policy wording.

r04DiE

300km a week through London on a road bike.
Hello all,

I am looking for some advice from you guys (as usual)!

I am currently arranging life insurance and critical illness cover so that our mortgage/bills are paid off in the event of the unthinkable happening.

The salesman says that the life insurance will pay out if one of us croaks or is "... diagnosed with a terminal illness with only twelve months or less to live..." or words to that effect.

Our concern is that many people with terminal illnesses may not have had it put down in writing by their consultant that they will only live for a certain amount of time, and of course there are people with terminal illnesses that live way past 12 months.

It all seems a bit prescriptive to me but is this just usual wording? Also, if any of you have recommendations for life insurance / critcal illness, then I would be really happy to hear from you.

Thanks again :smile:
 

midlife

Guru
If its just the mortgage then something like level term assurance (I think that's what it's called) will likely be the cheapest. Something to do with the amount owing on the mortgage decreasing with time.
 

gbb

Legendary Member
Location
Peterborough
Read the benefit details in case of critical illness / redundancy very carefully. Either I failed to understand or missed a detail when arranging it all...or it was verbally overstated deliberately and I failed to pick up on the detail when signing on the dotted line. Result was when I finally needed it years later...it paid nowhere near what I thought it would. Take Into account the qualifying period as well, things have to be really bad to begin to qualify for benefit.
 

SpokeyDokey

Nearly 63 - oh dear!
Moderator
Hello all,

I am looking for some advice from you guys (as usual)!

I am currently arranging life insurance and critical illness cover so that our mortgage/bills are paid off in the event of the unthinkable happening.

The salesman says that the life insurance will pay out if one of us croaks or is "... diagnosed with a terminal illness with only twelve months or less to live..." or words to that effect.

Our concern is that many people with terminal illnesses may not have had it put down in writing by their consultant that they will only live for a certain amount of time, and of course there are people with terminal illnesses that live way past 12 months.

It all seems a bit prescriptive to me but is this just usual wording? Also, if any of you have recommendations for life insurance / critcal illness, then I would be really happy to hear from you.

Thanks again :smile:
Re the life insurance element - that sounds standard to me. All they are saying is that if you have a confirmed diagnosis that you have less than 12 months to live that they will pay out early.
 

Low Gear Guy

Senior Member
Location
Surrey
If the policy is similar to one we were offered in the past, only specified illnesses will be covered. Other causes of incapacity were not covered. We declined this and went for standard life insurance.
 
OP
r04DiE

r04DiE

300km a week through London on a road bike.
Thank you, everybody for your very helpful comments.
 

byegad

Legendary Member
Location
NE England
I had a policy that paid out so much a month if I became incapable of work. Some years later I had a breakdown and couldn't return to my old job. They paid out for several years, until I got to 55, which was the limit on the policy, only reducing the payout by a percentage when I got a new, lower paid, job. Well worth the £8/month I'd paid for the policy. My mortgage ended at 55 so I was secure for life.
 

icowden

Senior Member
Location
Surrey
All life insurance / critical illness policies are very precisely worded to try and avoid the eventuality of a payout. Personally I think the critical illness is well worth the extra payment, but that's mostly because my better half had a small heart attack about 6 months into our marriage (she is fine now by the way) which meant the critical illness had to pay out. So you never know what is going to happen.

On the downside, once you have had a payout, it seems impossible to get life cover unless you pay silly money.
 
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