Critical Illness mortgage insurance

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  • Critical Illness mortgage insurance
  • mildred
    Member

    Is it worth it or are they so restrictive that they may as well be re-named terminal illness cover?

    Premier Icon jekkyl
    Subscriber

    They are worth it, very much so. It may seem like a rip off but there are regulations in place to cover when they pay out and generally they do. It’s worth consdiering a reputable companty though, friends life gets great reviews.
    If you get Cancer you get the mortgage paid off, if you then recover then you’re outgoings are greatly reduced. Worth considering seperate crit and life policies as well rather than a combined first incident, pay out then policy finish. This would leave the remaining spouse without cover potentially older when policies are more expensive.

    dirtyboy
    Member

    I got 117k for having a minor heart attack @BPW, I was with LV insurance took a while to get them to payout but seeing as I didn’t work for 2months afterwards it definitely gave me some time to recover without worry.

    geetee1972
    Member

    If you have children or if you are planning on having children, it’s a no brainer assuming you can afford the premiums. It can seem very expensive, depending on when in life you buy it.

    km79
    Member

    I got 117k for having a minor heart attack

    Tempting…

    nickjb
    Member

    I suppose it depends what would happen if you got I’ll and couldn’t pay the mortgage. I put spare cash into savings and pension. If something happens to me I can get that back to tide me over. If nothing happens I have more savings. That seems better to me but everyones circumstances are different.

    Premier Icon funkmasterp
    Subscriber

    I think it’s worth it for peace of mind. I’m with Royal London and pay about £70 per month. If I shuffle off this mortal coil unexpectedly or become seriously ill or terminally ill the mortgage is covered and Mrs F gets a monthly lump some. Worth it for me but YMMV

    Premier Icon pictonroad
    Subscriber

    Thing is, I’m now worth considerably more cold than warm. Especially if I get horrifically mangled at work. Kids and the Mrs will be set for a couple of generations.

    Something to think about….

    I just got it through my employer. I reckon its worth it although my cover does state illnesses have to be of a certain severity to qualify…which means certain procedures, treatments or medication are required to prove it was critical.

    I’ve always meant to get it, as a child I remember my Mums friend, she had recently split up, and was supporting five kids and a mortgage. She got ill (fairly serious, think it was cancer as I’m sure I remember her hair grew back a different colour). During the illness she struggled to pay the mortgage and eventually rang up to explain the situation and hand the keys back/negotiate a lower payment.

    I’m sure there was paperwork involved, but the telephone conversation basically went ‘OK so you are being treated for XYZ…let me see what I can do for you’…’do you realise you have critical life cover?’…No…’Ok, all sorted, your mortgage is now paid off. She must have been in her 30’s at the time.

    Premier Icon beej
    Subscriber

    Friend of mine got a £500K mortgage paid off, less than 2 years into the term, for a minor heart attack – a stent was put in within hours and he was back at work 3 days later.

    Another friend had a payout for cancer that they’re now in remission from.

    So… it was certainly worth it for them, though I’m sure both would rather not have had to claim.

    Premier Icon iainc
    Subscriber

    and on the flip side, I took cover out through work and a bit over a year later was diagnosed with prostate cancer. It didn’t pay out as the cancer was deemed to be a ‘pre-existing undiagnosed’ condition…. 😯

    nealglover
    Member

    Friend of mine got a £500K mortgage paid off, less than 2 years into the term, for a minor heart attack – a stent was put in within hours and he was back at work 3 days later.

    Really.

    No loss of earnings and he got half a million payout ?

    I’ve been off longer than that with a hangover.

    mildred
    Member

    Basically my problem is the cost; we’re extending the mortgage by a considerable amount to get the dream home… but with an monthly premium of around £200 this has a significant impact on the affordability for us.

    That is, if there’s a rise in interest rates of more than say 1.5% this money will be needed.

    Up until now it’s never been an issue but with the rise in mortgage… aaaaaaggghhhhh….!!! My head hurts.

    To be deemed pre existing medical condition medical appointments or investigations must have taken place. These appointments and or investigations have to be declared at application stage.

    To answer the OP. It might or might not be relevant to you depending upon your future health fears and protection for you or those you love.

    Oh and plus some cover is better than none. Buy to your monthly budget to provide funds when really needed. Or buy cover that would pay the bills for 2 or 3 or 4 years etc so no immediate panic if serious illness hits you

    Premier Icon fettlin
    Subscriber

    House of our dreams here with corresponding mortgage and we’ve both taken full cover. The biggest thing for us was both our families have recent history of high risk illness. Doesn’t mean we’re likely to be diagnosed the same, but the risk was not worth taking for the (admittedly huge) monthly premium. YMMV.

    Premier Icon beej
    Subscriber

    Really.

    No loss of earnings and he got half a million payout ?

    I’ve been off longer than that with a hangover.

    I know. Bastard. It’s genuine, his heart consultant wasn’t a big fan of insurance companies trying to get out of paying so he supported the case. Very lucky though, felt terrible on the trip into work and his colleagues insisted he went to the hospital over the road. Was in the London Heart Hospital half and hour later.

    Still, he’s on drugs for life and the stress of thinking every minor pain is a sign of another one. Much harder getting travel insurance, life insurance etc.

    Premier Icon sc-xc
    Subscriber

    L&G paid out £110k a few years back when my wife had a stroke.

    The form was 2 or 3 questions, payout within a week or so.

    I would recommend.

    nealglover
    Member

    Basically my problem is the cost; we’re extending the mortgage by a considerable amount to get the dream home… but with an monthly premium of around £200 this has a significant impact on the affordability for us.

    Not surprised you are 2 minds.

    That premium is only £12 less than my monthly mortgage payment 😉

    eskay
    Member

    I was surprised how expensive it is now, we remortgaged recently and wanted to extend the life cover.

    A lot has to do with you age I think, when we took the original cover we were in our twenties (now in forties).

    newrobdob
    Member

    When I got my new mortgage recently I was told that people are living longer so life insurance is much cheaper, but unfortunately people do get serious illnesses which they survive more often as a result so critical illness cover has increased in price.

    We had a £55k level term critical illness/life cover for our last mortgage which we have kept as it’s joint cover and really cheap per month, and topped it up with a new life insurance policy for the new mortgage amount. So if one of us becomes ill we get half of mortgage paid (could sell up and get a smaller house mortgage free) but we get mortgage paid off and £55k (plus workplace benefits) as well if one of us dies.

    Critical illness cover on the new mortgage was £90 a month so we kept the old one.

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