Critical illness and life cover in mid 50s..looking for advice

Lookingforadvic

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Hi there,
I was about 3 years ago, diagnosed early with cancer and after all treatments, I got all clear and all well now Thank God.

However, something my oncologist mentioned in passing (being proactive about looking out for oneself), I can't get out of my mind: about critical illness and life cover.

My hubby and I both have life cover, however that ends in 2027 (same time as mortgage)...however after that date we have no life cover in place..By then we will be early 60s.
I'm presuming I will never be able to buy affordable life cover given my diagnosis..so would it be prudent to take out new critical illness with life cover just for my husband alone. He is the higher earner-self employed- in our family. We have 3 children (Uni, secondary and primary school)..

I'm thinking that if anything happens to me, hubby won't be able to keep up full time working. Also if anything happens to him (recently he had a health scare but all well Thank God), how would I cope re living expenses etc..

Would it be very expensive to take out new policy just for him? Are policies available where the level of cover does not decrease each year while the premium does not increase as well?
Only times in the past we took out cover was in relation to mortgage..so not very knowledgable re such stuff.
Any advice would be welcome..
Thanks.
 
You won't be able to get life cover or critical illness cover, so if something happens to you, he will have to make it work.

He might get life cover and critical illness cover. But you have life cover on your mortgage. So if anything happens to either of you before your mortgage is finished, it will be cleared.

Check your mortgage protection policy. There are two types - level balance where the sum assured remains the same or reducing balance where the balance reduces in line with the expected reduction on your mortgage.

I would guess that the most profitable option for both of you would be to max your pension contributions. In other words, boost your savings so that when you are in your 60s, you will be able to retire.

In 7 years time, you will have only one child in college and the other two should be independent.

What sort of business is he in? I recommend to people like accountants and solicitors who are sole traders that they should enter into an agreement with someone similar so that in the event of critical illness, the other can help keep the show on the road. Is that possible?

Brendan
 
Re the life cover you have on the mortgage. Have a look at the policy and talk to your broker, or phone the life company if you have none, to see if you were given and took up, the option of being able to reinsure after expiry of the term, with no medical. I don't know the exact term, but the life assurers all sell policies where you can take out another policy on expiry of the current one, with no medical. This means that even if one had a terminal illness, and were expected to die days after taking out the policy, the insurer MUST sell the policy and then pay out!

Having said that, I do wish you well.
 
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