# critical illness or permanent health insurance ?



## noel2004 (15 Mar 2005)

While having a financial review in my bank, it was proposed that I needed critcal illness insurance.  This pays a lump sum in the event of one experiencing a series of illness.  Permanent health insurance was also mentioned which I understand pays you an ongoing payment in the event of not being able to work.  Does anyone have any insight into the relative priority that should be accorded to these?  Presumably, one would not want both?  In terms of personal circumstances, I am single, in my thirties, with no dependents.


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## POBHD28 (15 Mar 2005)

This is probably stating the obvious, but a financial review with your bank is really just them trying to sell you more product. If you're in good health in your 30s and have no dependants, I'd say you shouldn't overinsure yourself on these things. 

Now what you'd define as "overinsuring" in your particular case is entirely your call. Have you a mortgage? Are you on a high salary and would serious illness very definitely impact on your ability to keep yourself in the style to which you're accustomed? 

If you do decide you need such a product, don't just accept the bank's offering - shop around. I'm speaking from experience here, by the way. A few years back I blindly accepted my bank's recommendation for life assurance/critical illness cover and signed into a very non-competitive policy. I'm currently looking around for better options but since I'm now a bit older and have had a couple of minor health issues in the interim, it's likely that my premium will be a bit dearer. If I had got a better policy at the outset this would not now be an issue.


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## noel2004 (16 Mar 2005)

Thanks for reply.  I agree the 'review' was really about selling products but I think that maybe I do need some insurance of this type.  I am coming to the view that permanent health insurance may be the more important insurance to have as it is aimed at protecting one's income.


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## L Ferguson (31 Mar 2005)

Critical Illness cover pays you a lump sum in the event of your suffering one of the _specified_ illnesses.  Income Protection or Permanent Health Insurance pays you an income in the event of your suffering from _any_ illness or injury that keeps you from working for longer than the specified waiting period.  

As such, Income Protection covers a wider spectrum of possible conditions that would give rise to a claim.  The premium on an Income Protection policy is allowable in full for tax relief at your highest rate.  Critical Illness cover premiums are not.  

If looking at Income Protection, make sure the definition of an illness is that you will be paid if you cannot perform your _own_ job.  There are some products out there that have far broader definitions of disability and are therefore harder to claim on.  

Liam D Ferguson
www.ferga.com


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## brendan74 (31 Mar 2005)

Regarding Permanent Health Insurance, if you find out any more on this or indeed anyone else know, perhaps they could let us know. There was a very good article in the Irish Indo business section a good few weeks ago regarding this topic, however it didn't give much info. on insurance companies providing this form of insurance.

as the article suggested it is a very important form of insurance to have. Having been in a very nasty car crash there 2 years ago, I was out on sick leave from work for 18 months. o.k. the car insurance will recompensate me for any losses, but boy does this take a long time to come good. I'm still waiting and now back at work. Thankfully I was not liable so i should get this money but who knows what can happen in life. having this form of insurance is a very good form of protection if one become ill or incapacitated for any length of time, as it guarantees some form of income. 

Only today I contacted my insurance company, Cornmarket, regarding this. when i find out any further details i will pass this on. Likewise it would be great to hear from others who have this form of insurance and perhaps further details of their policy,cost etc. Many Thanks.

Regards,
Brendan


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