Given that Dan and his wife are in good health, they should both consider taking out CI cover. CI co...
Given that Dan and his wife are in good health, they should both consider taking out CI cover. CI cover of £60,000 for 15 years should be the bare minimum that they have. The monthly cost on a joint life basis with TPD would be £25.75. At Skandia, this price includes life cover and up to £25,000 children's CI cover, since these benefits cost no extra. To add the cover reinstatement option ' CI buy-back ' would be an extra £2.57 a month.
However, if the family can afford it, they should consider having more cover. So if diagnosed at any time, there is extra money for personal expenses, not just enough to pay the mortgage.
Skandia Protect can provide this through rolling term ' where cover and premiums are guaranteed for 10 years at a time, with lifetime guaranteed insurability.
The family could set up a Skandia Protect plan to give them this extra protection with two policy options. The first provides a 15-year fixed term, with £60,000 CI and life cover, TPD and a cover reinstatement option for a premium of £28.32. The second provides a rolling term with £40,000 CI and life cover, TPD and a cover reinstatement option for a premium of £21.92.
Together, the total premium would be £50.24; however, should critical illness strike one person then £100,000 would be paid, that person could reinstate up to £100,000 CI and life cover a year later and the person who did not claim could still have cover by using the continuing cover option to take out a new single life policy without any health evidence.
In addition, if one of the children were critically ill, children's benefit would be payable up to £45,000, since we would allow Dan and Helen to make one claim each using both policies in the plan.
