Aib Critical illness cover

Trhiggy83

Hi everyone,
Was reading on one of the previous threads about critical illness cover and am thinking of ditching this. I am currently paying 36 euro a month for this cover and am starting to think there may be other options out there that may suit me better. The 36 euro covers me for 100k if anything was to happen to me in the future but at the moment i dont have any dependants so would i be better off with just mortgage protection when i eventually buy a house (currently renting at the moment) this may save me a few quid in the mean time. Im not too up to date with all the differant types of cover out there, so if anyone knows of an alternative or thinks that what i have proposed above is a good idea then let me know

eagle_i

Hi Trihiggy,
Critical Illness and Mortgage Protection are two completely different things.
Critical Illness pays a lump sum on diagnosis of a serious illness. The illnesses covered will be listed in your AIB documentation.

Mortgage Protection (MP) is mainly life insurance (Critical Illness can be included in a MP contract as an optional extra), which means a lump sum is payable on death only. The idea of a MP policy is to clear the mortgage in the event of death (or diagnosis of a critical illness if you went for the optional extra at the time of purchase). Also MP contracts are designed to reduce the balance of the life cover in line with your mortgage capital and interest repayments, therefore as time goes by the life cover reduces to Nil!

I can't and will not say it is to your benefit to ditch the Critical Illness policy as this would be irresponsible of me and any other adivser without knowing your full financial background. You really need to talk with an independent financial adviser, where they will complete a full financial factfind, as such a financial health check. This will outline any unbalanced cover (if any) in terms of life or critical illness cover, investments etc... As such the more information you give the adviser, the more he/she can give you a personalised recommendation. The adviser can only work with the information you feed him/her.

It would appear from reading your previous post you rely on AIB for your advice, while AIB have their uses, in my view (and I admit I have a biased here) you really need independent advice. An AIB adviser will only advise you on AIB products, an independent adviser (ie. an 'Authorised Advisor') is required to give unbiased and truly independent advice, you will get a list of financial advisers near you from the Irish Financial Regulators website (www.ifsra.ie).

broker2008

Another way of looking at this is to roll forward to 10 years time, wife and kids and you contract serious illness and 100k paid out - very little premiums paid out in comparison to payout. That is why you have it. If you were to look to get it in 10 years time, the same premium would be over 100 per month