Life insurance policy wording.

[r04DiE]

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

 

[midlife]

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]

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.

 

[Beebo]

They will obtain at least one independent medical opinion on the 12 month issue.

 

[sleuthey]

Chances are they will write to your consultant in the event of a claim so obtaining it in writing probably not necessary.

HSBC are supposed to have a good pay out rate

 

[SpokeyDokey]

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

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.

 

[twentysix by twentyfive]

Read the small print. Several times. Don't act on salesman verbals (even if he isn't intending deceit) as the actual crucial words are in the small print

 

[Low Gear Guy]

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.

 

[r04DiE]

Thank you, everybody for your very helpful comments.

 

[byegad]

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]

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.

 

[TheDoctor]

In all fairness, I don't expect most people claim on life insurance more than just the once...

 

[icowden]

To qualify then - a payout under critical illness will prevent you getting life insurance it seems...

 

[vickster]

To qualify then - a payout under critical illness will prevent you getting life insurance it seems...

Is that a surprise?

 

[Profpointy]

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.

Same here. Although the list of illneses was quite long, it occurred to me that there were thousands of illnesses one could die of