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Life insurance critical illness and redundancy cover...

Kitt 2000Kitt 2000 Posts: 1,108
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in Advice #1
Now I'm looking at a getting a mortgage I am also looking at insurances to cover events such as death, illness and even redundancy to protect my mortgage payments...

Thing is Asda called me back and told me that redundancy cover does not kick in until a few months after your made redundant. also you would have to sign on for Job seekers and if you was even offered a part time job you would have to take it or lose your insurance money...

Anyone got any experiences of insurance against redunacy??

Is this the case??

Is it even worth bothering with this aspect of insurance??

Any advice please???

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    KennedyCKennedyC Posts: 1,289
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    #2
    PPI - Redundancy/Sickness coverage is fraught with problems and loopholes. Good mortgage companies will allow you to take payment breaks in the event of loss of income although usually limited to 3 or 6 months. I would forget insurance and concentrate on building up a savings pot using regular payments. Aim to get your savings to cover at least 3 months worth of payments.

    Life insurance is something that you can get fairly cheap if you are young. Its worth having even if you don't have a mortgage.
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    phepiaphepia Posts: 1,476
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    #3
    They do not pay out on existing conditions, even if they are only slightly related.
    Wouldn't pay out on mine.
    I had right shoulder problems and was trying to claim under left, but they still refused to pay out. Dr hadn't specified which shoulder so they refused. Even after appeal they wouldn't.
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    [Deleted User][Deleted User] Posts: 1,959
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    #4
    phepia wrote: »
    They do not pay out on existing conditions, even if they are only slightly related.
    Wouldn't pay out on mine.
    I had right shoulder problems and was trying to claim under left, but they still refused to pay out. Dr hadn't specified which shoulder so they refused. Even after appeal they wouldn't.

    Was this disclosed on the original application? if not then if they had known there would have been an exclusion on the plan for that condition so i wouldn't have mattered what shoulder. Very important to disclose evertything
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    phepiaphepia Posts: 1,476
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    #5
    grogdog wrote: »
    Was this disclosed on the original application? if not then if they had known there would have been an exclusion on the plan for that condition so i wouldn't have mattered what shoulder. Very important to disclose evertything

    Being truthful I don't think I did. Heh we learn from our mistakes
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    Hildas HairnetHildas Hairnet Posts: 643
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    #6
    When I got my original mortgage I got all this cover, however, noticed that the deferment period was about 6 months before any cover would become effective (with the exception of death of course :rolleyes:)

    I ended up cancelling it as I couldn't afford it - however, the mortgage interest rate at the time was over 10% :eek:

    I agree about the loopholes etc
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    Kitt 2000Kitt 2000 Posts: 1,108
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    #7
    Sounds like I need to really do my homework before i take the mortgage out etc..

    Last thing you would need is not being able to claim if you needed to...
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    Keefy-boyKeefy-boy Posts: 13,613
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    #8
    phepia wrote: »
    They do not pay out on existing conditions, even if they are only slightly related.
    Wouldn't pay out on mine.
    I had right shoulder problems and was trying to claim under left, but they still refused to pay out. Dr hadn't specified which shoulder so they refused. Even after appeal they wouldn't.
    You're talking about private health insurance though? The OP would be looking for critical illness cover which is not the same, though full disclosure obviously required.
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    Kitt 2000Kitt 2000 Posts: 1,108
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    #9
    Keefy-boy wrote: »
    You're talking about private health insurance though? The OP would be looking for critical illness cover which is not the same, though full disclosure obviously required.

    Yeah thats right critical illness cover would be crucial, never know what life has for you...

    Just so much to think about..
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    lemonbunlemonbun Posts: 5,371
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    #10
    Kitt 2000 wrote: »
    Yeah thats right critical illness cover would be crucial, never know what life has for you...

    Just so much to think about..

    I've never had life insurance, never mind critical illness, and I'm 47 with two houses.

    It depends on your circumstances. How old are you? Do you have dependants (i.e. children) or do you expect to have them later in life? If so, some life cover at an early age may be worthwhile, as it's cheaper the earlier you take it out.

    Critical illness cover is rarely worth while - it is expensive and has so many loopholes.

    I don't have life insurance because I have no kids (and always knew that I wouldn't when I took out my first mortgage at 25) and also I have a pension that provides enough of a lump sum should I die in service for any partner to pay off the current mortgage.

    Advice from a truly independent financial advisor would be the best way forward.
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