What types of policy are available?
There are various options available for people planning to opt for critical illness cover and it is worth searching the high street to make certain you get a policy that fits your needs, preferences and budget.
Life insurance and critical illness cover
Many insurance providers offer life insurance alongside critical illness cover, which means that the insurance company will issue a payout if the policy holder is ascertained to have a severe infirmity (provided that it is incorporated in the policy) or dies. In most cases, if you claim for critical illness, this will invalidate your life insurance, which means you will only receive one payout, rather than a lump sum being paid when you are diagnosed with the illness and another sum being paid in the event that you die.
Many insurance providers encourage customers to take out protection on their mortgage in the event that they have to stop working as a result of illness or the individual/their partner dies. Mortgage protection insurance ensures a payout that should cover the rest of the mortgage in the event that the policy holder dies. Most insurance providers allow to you to include critical illness cover and life insurance with your mortgage insurance protection policy. If you hold a mortgage policy you can choose the term (length of time) and this will determine the amount you pay. Mortgage plans are often known as decreasing term insurance, because the payout you receive decreases over the course of time as you pay more off your mortgage.
Some policies automatically cover your children and partner if this is applicable, and it is a good idea to take out a policy that covers all of your family members. Most policies cover children until they reach 18 years of age and they can no longer be counted as dependents. It is possible to get single or joint policies for couples.
Choosing the right policy
With so many policies and providers out there it can be difficult to choose one policy, especially if you do not know much about insurance. A financial adviser can explain the different policies to you and outline which ones best suit your needs; you can also contact insurance companies and they can recommend policies based on your personal preferences and budget, along with the rank of cover you are looking for.
Critical illness cover
Critical illness cover is usually preferable for single people with no dependents. There is a mixture of levels of cover, which start from basic packages and move up to comprehensive plans that cover many different illnesses. Generally, the more you pay the more comprehensive the plan. However, it is always worth getting a few different quotes to see how much cover your money can get you.
Once critical illness cover is taken out it is possible to adjust your level of cover, but you must talk to your insurance provider to confirm this, as increasing your cover will usually increase your premium.
- Life Insurance - Intro
- Why should I consider buying critical illness cover?
- Which illnesses are covered?
- How do I compare critical illness cover policies?
- What is the cost of critical illness cover?
- Can I increase my cover after the policy starts?
- How do I make a claim?
- What is level term life insurance?
- What is mortgage protection insurance?
- What are critical illness policies?
- Will any exclusions apply to the critical illness cover?
- What types of critical illness policy are available?
- Who can take out critical illness cover?
- How do I apply for critical illness cover?
- What should I do if I want to complain?