Cancelling Critical Illness cover, cheaper option?

Hi,

Looking for any advice. I am in my 50's. Have had a Critical Illness only policy with New Ireland since 2003 with indexation. It is gone very costly now nearing €500 for benefit payment of €359,000. I am looking to reduce the cost. I think a cover of €150,000 would be ok. I have a good life cover policy. I rang New Ireland to see if I could reduce benefit & cost but I was told it was a 'non amendable term' policy. So far paid into policy around €47K. Does anybody see any problem with taking out a new Critical Illness policy for the lower amount of €150K and just cancelling the existing policy.

Thanks

You may have a reviewable whole of life policy, if so then it is probably a good idea to look at alternatives (there is plenty of information on this site about the issues around reviewable whole of life policies). If you are looking at cancelling your existing policy and submitting for a new one, some of the issues you will have include:

> You will need to complete a new proposal form and disclose your current health.
> Premiums will have increased since your last policy submission as has your age.
> Generally, serious illness cover has got a lot more specific since you last took one out. This may mean that it could be tougher to get a new insurer to accept a serious illness.

I would say the a person in their 50s looking for CI cover would have the same alarm bell ringing as 18 year old looking to insure a Ferrari. 47K is a lot of premium but, look upon the fact you have not had the need to use it as a bonus. They are also very selective on what is now covered as to what was previously covered on the policy.
You may find it cheaper to continue the existing policy.

I am surprised that New Ireland won't let you reduce your level of cover. Maybe with the older plan, their computer system doesn't allow for a reduction? I don't really know.

I doubt it is a reviewable contract, these are a lot more flexible, so you would be able to reduce the policy.

I ran a quick quote for you for €150,000 cover for a 55 year old. Cover for 10 years is €199 a month.

And don't worry about how much you have paid. We don't add up how much we pay for our house or car insurance over the years. We just hope we never to claim on it. Same with life and critical illness cover. The only time you'll see a pay out is if you are extremely sick or dead!!

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Apologies for late reply, thanks all for your inputs. I was told by New Ireland it was not reviewable and I cannot reduce cover on the policy, which would have being my preference. I don't worry about the 47k, I was fortunate enough to afford to be able to pay it and yes I do consider it a big plus that I have not had to claim on it and I hope I never will!

The €150K cover seems like a good option and a much needed saving of €300. I have the original policy doc so I think my next step is to try compare the coverage on the old policy to any new quote to see what I might lose in terms of illness cover as mentioned above by jimbobp

The difference in illnesses covered is in the definition. The older contracts cover less illnesses but have broader definitions of what that illness is.

The contracts these days cover much more illnesses but have narrower definitions. It is also a race to cover the most, even if your chances of claiming is practically nil. They all cover CJD (mad cow's disease) which can only be confirmed by a brain biopsy after death. Go figure how many claims they've paid out on that one!!

Anyway, I've attached a list of all the different illnesses covered by the Irish providers.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)