Critical Illness Insurance A cheap alternative to Keyman Insurance? Part 2

But there is a cheaper potential solution. It's called Group Critical

With Group Critical Illness Insurance, the company decides which employees to insure and how much to insure them for, pays the premiums and receives all lump sum payouts. Claims can be made as soon as any of the insured people are diagnosed with a scheduled critical illness and the policy will list a long list of chronic illnesses that are covered. As you would expect heart attacks, strokes and cancer are the biggest three biggest reasons for claims but the full list is much longer. For example, kidney failure, meningitis, CJ Disease and even blindness.

The important point to realise is that for the company to make a claim, the insured employee must survive at least 28 days after they are diagnosed with the critical illness. (Some insurance companies have now reduced this to 14 days so please check before you buy.) So if the employee died before the end of the survival period, the claim would be invalid. In that context, it is not as comprehensive as full Keyman Insurance - but at around half the price of Keyman Insurance there has to be a little compromise!

Simon Burgess, the Managing Director of British Insurance says: "Group Critical Illness Insurance is a real alternative to full Keyman Insurance and at around half the cost, it's great value for money. If business managers find Keyman Insurance too expensive there's little excuse for not filling most of the gap with Group Critical Illness Insurance. Don't pay the price for apathy".

Today's Tip
Don't buy direct from a Life Insurance Company or even your bank, until you have received at least two quotes from specialist life insurance brokers. That way you're bound to get a great deal for your life insurance policies.

Did you know?
53% of all car insurance is now bought online. That's because buying online car insurance helps you find the best deals. And it's important to remember that when it comes to renewal time, you need to shop around the Internet again! Don't automatically accept a renewal notice without checking out prices first - you may still get it cheaper!

Did you Know?
Mortgage lenders have been playing a dirty, but apparently legal game on exit fees. In response to the high numbers of borrowers who have been switching in search of a new cheap mortgage, the lenders have been responding by raising exit fees. During the last 3-5 years, exit fees have risen by as much as 450% - and what's worse, the lenders haven't bothered to tell the borrowers!

Now the Financial Services Authority (FSA) has noticed what they're up to. It's investigating these practices.

Did you Know?
When looking for low mortgage rates you're sure to face the decision between choosing a cheap rate or a higher rate mortgage but which has very low, or no up front costs.

Everyone has seen mortgages advertised with incredibly low interest rates on both the Internet and in the national press. Experience has shown the mortgage lenders that it's a low headline interest rate that pulls in the borrowers. The problem is that these ultra low rates force them to replenish their profits in other ways. A common solution is high arrangement fee.

Arrangement fee are charged to supposedly cover the cost of managing the mortgage application and reserving the advance. These fees can normally be rolled in with the mortgage advance but some lenders require them to be paid in up front. And the fees do vary enormously, not only between lenders but even between mortgage products marketed by the same lender. So keep your eyes skinned!

Did you Know?
According to the Council of Mortgage Lenders, last year over 200,000 homes in the London area were financed by an interest only mortgage without a repayment vehicle being in place. Of these, 60,900 buyers were first-timers.