Life Assurance

Reggiesmammy

Hi , I'm looking for advice re life assurance. I've recently been approved a mortgage and went to the bank today to soft out LA. The package I went for was mortgage paid in full on both serious illness and death. At the time it seemed like a no brainer to go with the serious illness cover but @ 120euro it is a lot of money to pay out every month and looking closer at the cover it excludes non advanced cancers and i wonder is there a dozen more loopholes? Has anyone any advice 're the best policy to go with?

Henry Ford III

Depends entirely on your personal and financial circumstances.

JTMan

I went for coverage of the mortgage on death only. I got life insurance with Royal London via LA Brokers for 22 EUR per month.

120 EUR is a lot to pay. Why are you going with illness coverage? Do you have kids? Are you healthy? What are your circumstances?

ANXIOUS

JTMan wrote: »

Are you healthy?

Everyone is healthy until the day something goes wrong and they need a policy like this.

Heres Johnny

Serious illness cover is much more expensive than life cover. It's normally accelerated illness too which means it's a prepayment on life cover, that means if you use the illness cover it reduces the life cover.

I set people up with these all the time and normally what people go for is something like:

200,000 life cover to clear mortgage in case of
40,000 Serious illness cover to cover mortgage for a few years if sick. Normally with a serious illness you do either of 2 things; be sick for a few years and recover or else die.
If you die the remaining 160,000 life cover would then be paid out.

I would get a very basic mortgage protection policy which you will have to assign to the bank, and then a personal policy for yourself which you have control over. Don't assign anything other than the minimum to the bank.

Heres Johnny

Serious illness cover is much more expensive than life cover. It's normally accelerated illness too which means it's a prepayment on life cover, that means if you use the illness cover it reduces the life cover.

I set people up with these all the time and normally what people go for is something like:

200,000 life cover to clear mortgage in case of
40,000 Serious illness cover to cover mortgage for a few years if sick. Normally with a serious illness you do either of 2 things; be sick for a few years and recover or else die.
If you die the remaining 160,000 life cover would then be paid out.

I would get a very basic mortgage protection policy which you will have to assign to the bank, and then a personal policy for yourself which you have control over. Don't assign anything other than the minimum to the bank.

Reggiesmammy

Thanks for all the replys. Life cover is on 22 euro the extra hundred is the serious illness which pays the full amount of mortgage if either of us is seriously ill.Both our jobs pay 3/4 of our wages if on long term sick so I think this is good enough without the serious illness cover as in we can still afford to pay mortgage if one of us is out sick. I'm gonna go with the standard package and hope for the best 😶 thanks all

Henry Ford III

Reggiesmammy wrote: »

Thanks for all the replys. Life cover is on 22 euro the extra hundred is the serious illness which pays the full amount of mortgage if either of us is seriously ill.Both our jobs pay 3/4 of our wages if on long term sick so I think this is good enough without the serious illness cover as in we can still afford to pay mortgage if one of us is out sick. I'm gonna go with the standard package and hope for the best �� thanks all

If you've both got d.i.s. cover at work (likely as you have PHI) that might be enough.

If you have kids however it might not be.