Straw poll – yay or nay to life insurance to cover the mortgage payments in case of critical illness?

About to move house and in the process of arranging the new mortgage – We’re both quite well covered by work in case of death or illness but leaning towards additional cover as a new sprog means the other can’t simply skip the country and default on the mortgage if the other cops it.

Would appreciate others thoughts.

i m still alive and have no mortgage.. i had open heart surgery and a tia and two heart attacks neither of which was considered critical enough to generate a payment.. my sister had to have a letter from two consultants saying she had less than 6 months to live… thankfully she won twice.. shes still here 16 years later and had her mortgage paid off..

Critical Illness cover is quite expensive no ? Compare cost to simple life insurance and then decide ?

I only ever had simple life insurance and had work “death in service” too but that so rarely pays out as if you get sick you get fired after (say) 6 months

Are you planning to die? We all will someday and its not entirely in our control when. Death in Service benefit through work can “pay off” the mortgage so the other parent has somewhat less worries. Depending on the multiples etc, there may even be a small surplus – but a grieving family can consume money very quickly. Having been pretty close to such a situation I can assure you it would have been far better if there was proper life cover too, then the surviving partner (and children) could have been quite comfortable for the future, rather than just not badly off. Its also worth considering that if you get a very serious illness you may end up no longer working (and thus not being “in Service”) before death, but will by then be likely uninsurable.

Critical illness cover is harder to answer in my opinion, as they become increasingly difficult to extract payments from.

Certainly had life cover for the mortgage. Death in service would also have covered it but bear in mind if one of you goes, the other will either need to reduce their working hours or pay for additional childcare costs if there are kids to look after.

Life cover, yes. Enough such that the remaining spouse has enough to pay off the mortgage, cover the bills until the kids are 21, and pay for the kids uni education. If we both go, the kids are rolling in it. Also pays out for terminal illness (even if you recover). But not critical illness, no. It’s simply too expensive.

Reducing balance life cover here.

Plus pension life cover from work.

i’m self employed and as such my significnt other gets diddly squat…

you’re describing two kinds of insurance aren’t you?
Critical illness cover is one thing.
Life insurance another.

Look at your mortgage Ts&Cs too – there might be cover in case of critical illness lurking in there.

We both have fair death in service benefits and also took out whole of life insurance to cover outstanding mortgage costs and residual costs.

I took out critical illness cover many years ago. It was cheap then and gives good index-linked cover. I would probably not start such a policy now as I’m less risk averse and I guess it’d be uncomfortably expensive.

I’m researching LTA as we speak for death but not critical illness but that’s just my take on it

Just got a big mortgage. Via the broker we looked at life insurance (got), critical illness cover (too expensive), income protection for mortgage payments deferred for 6 months once work sick pay runs out (got). Also have death in service benefit and works pension.

I need to read the details and get my terms straight rather than just listen with one ear whilst at work.

I understand that what I am being offered is critical illness cover that will pay off the mortgage if one of us (or a one of payment of 35k for a kid) is diagnosed with an illness or injury that is on their list (which I expect despite the sales pitch will be short). This cover tapers as the mortgage progresses, paying out at any point only the remaining balance on the mortgage. It’s just over a hundred quid a month so certainly adds up.

Woah hold on. Page one of the key facts explains that I have to be diagnosed, get treated, and then survive for ten days before a payout. Nothing like the sales pitch on the phone which was describing receiving a payout 24hrs after diagnosis….

Nothing like the sales pitch on the phone

Funny that .. not

Life Insurance is easy to understand, the rest more complex with plenty of wiggle room.

I have Life Assurance with Legal and General via Cavendish brokers. At the time it was about half the price of anywhere else as Cavendish charged a fixed fee and not commission. I’m not sure they’ll be so cheap anymore but well worth trying. They’ll do all the variants.

All of ours is through the respective employers. Will have to check exactly what is covered no after seeing the weaselling out scenarios above

I have life cover deferred for 2 months for non-death.
This significantly lowered the costs.

I also have £10 totally sports insurance for specific injuries, mostly dislocations and fractures which covers a suitable amount to cover me up to the 2 month period.

Most fractures are repaired inside of 2 months so I feel I am sufficiently covered.

Shop about.

Life cover is pence, absolutely NO reason not to have it.