I was looking for some advice on mortgage protection and critical illness cover. At present, my wife and I (Both under 30, non smokers) are paying €62 a month to New Ireland for €350,000 worth of mortgage protection cover each and €100,000 worth of critical illness cover each. However, I've seen Charlie Weston in the Independent and a number of financial analysts stating that mortgage protection is one of the services that people should be shopping around for as there are alot of providers trying to undercut each other.
This morning, I heard an advertisement for Hello.ie. I went onto their website and got a quote for mortgage protection insurance for €350,000. The offered premium was just under €27 per month. However, when I went and got a quote for what they called "illness cover" of €100,000 for the two of us, the quote for it was €62 a month. That means to get mortgage protection and critical illness cover with Hello.ie would end up costing me €89 so the policy we have with New Ireland is better value.
That said, it got me thinking about the critical illness and if its worth it? It would appear that the mortgage protection cover is relatively cheap but the critical illness cover is pushing up my premium, if Hello.ie's quotes are anything to go by. I contacted New Ireland by email and asked for the price of my policy without the critical illness cover but they stated that they'd need me to contact my advisor to get a new price as "You cannot add or remove benefits for this type of policy. We would have to quote you for a new policy.".
I picked the 100k amount as an advisor for a different company previously told me that the max critical illness amount you should have is about 2 years' salary as, to put it bluntly, after 2 years, you'll generally either be dead and your mortgage protection will pay out, or you'll be back at work. A man I know though is suffering from Parkinson's and has had to give up work. His critical illness cover did not pay out as it said his condition is not critical. What's the point of having it then? I also know there is state support (at least €188 a week) if I did have to give up work through sickness. €188 isn't alot but I would imagine it can be supplemented with other benefits. So is the critical illness really worth the €35 a month I could save by switching to a standalone Mortgage Protection Policy with Hello.ie?
This morning, I heard an advertisement for Hello.ie. I went onto their website and got a quote for mortgage protection insurance for €350,000. The offered premium was just under €27 per month. However, when I went and got a quote for what they called "illness cover" of €100,000 for the two of us, the quote for it was €62 a month. That means to get mortgage protection and critical illness cover with Hello.ie would end up costing me €89 so the policy we have with New Ireland is better value.
That said, it got me thinking about the critical illness and if its worth it? It would appear that the mortgage protection cover is relatively cheap but the critical illness cover is pushing up my premium, if Hello.ie's quotes are anything to go by. I contacted New Ireland by email and asked for the price of my policy without the critical illness cover but they stated that they'd need me to contact my advisor to get a new price as "You cannot add or remove benefits for this type of policy. We would have to quote you for a new policy.".
I picked the 100k amount as an advisor for a different company previously told me that the max critical illness amount you should have is about 2 years' salary as, to put it bluntly, after 2 years, you'll generally either be dead and your mortgage protection will pay out, or you'll be back at work. A man I know though is suffering from Parkinson's and has had to give up work. His critical illness cover did not pay out as it said his condition is not critical. What's the point of having it then? I also know there is state support (at least €188 a week) if I did have to give up work through sickness. €188 isn't alot but I would imagine it can be supplemented with other benefits. So is the critical illness really worth the €35 a month I could save by switching to a standalone Mortgage Protection Policy with Hello.ie?