Serious illness benefit - Yay or Nay

El Gato De Negocios · 11-08-2021 9:53am #1

We are in the process of arranging mortgage protection currently and are pondering whether to include the SIB. We have a quote for the MP from Zurich and to add on 25% SIB it more than doubles our premium (€53 - over €110 per month). Im betwixt and between including it. On one hand it makes sense to have it, just in case but on the other hand, my employer pay full sick pay so its potentially over €700 a year that could be used elsewhere such as car insurance. Anyone any thoughts on it?

Henry Ford III · 11-08-2021 10:02am

Get a proper financial assessment done.

p.s. I'd always be inclined give a lender the minimum to satisfy their requirements and keep any personal cover away from them.

Jim2007 · 11-08-2021 2:58pm

Serious illness cover should be part of your over all financial plans, not something that should be consider stand alone. Your employer's sick pay would cover you in the normal situation and on the assumption that you'd be returning to work, but what happens if you are unable to return to work? And in such an event would the state benefits be sufficient or would you like or need to spend extra money on say adapting your home etc., how would your family cope and so on.

So may be start with an over all plan and see if it fits in.

JimmyVik · 11-08-2021 3:00pm

HAving worked in the insurance industry it is rare that a successful serious illness claim is approved.

Ive seen refusals right up to, things like you will only dies in 5 years so we arent paying out as 3 years is the limit.

Jim2007 · 12-08-2021 12:29am

https://www.boards.ie/discussion/comment/117738613#Comment_117738613

Well I haven’t worked in the retail side, but I have worked for one of the major reinsurance companies in Europe, one that many of the Irish companies reinsurance these types of risk with and a good year was one in which we paid out less than 105% of the premiums!

And yes of course your claim will be denied if you don’t meet the requirements of the policy to expect otherwise is unrealistic. And it is why we suggest the OP consider it in terms of their overall financial planning rather than a single event.

Atlantic Dawn · 12-08-2021 1:16am

https://www.boards.ie/discussion/comment/117738613#Comment_117738613

Agreed, there's so many conditions attached to it they cover themselves in almost every angle, something like loss of a limb will only be successful if the bulk of a limb is gone, a few fingers non issue, crazy what they get away with.

Henry Ford III · 12-08-2021 1:18pm

https://www.boards.ie/discussion/comment/117738613#Comment_117738613

I'd have issues with that statement.

I've seen statistics stating that over 90% of S.I. claims are paid. That doesn't tally at all with your claim.

Your 2nd paragraph makes no sense at all. Serious Illness cover requires a claimant to survive to be eligible to claim. It's only relevance to a death claim is where the S.I. cover is "accelerated" life cover. I've seen a case where both claims were paid. A lady had cancer and died from it some considerable time later.

p.s. ILAC alone paid out €47.1m in S.I. claims in 2020. A total of 701 cases.