Critical Illness

What is Critical Illness Cover?
A Critical Illness plan is designed to pay out a lump sum should the life assured be diagnosed with a critical illness during the term of the policy.

As there is no investment element, all of the premium can be used to provide insurance allowing quite high levels of cover to be achieved from relatively low premiums.

What options are available?
A Critical illness plan can provide level cover, i.e. the same amount of money will be paid whenever a claim is made during the term, or decreasing cover, i.e. to protect a capital repayment mortgage where the lump sum needed gradually decreases over the term of the policy.

These plans can also include a waiver of premium benefit so that the company will in effect waive premiums after a specific period if you were unable to pay due to an accident or long term illness.

This type of cover can also be combined with life cover to provide the lump sum on diagnosis of a critical illness or death if this should occur earlier.

Critical illness plans can be written on single life or joint life basis, noting that a joint life basis will only pay out once.

Which "Critical Illnesses" are covered?
Illnesses typically covered include: -

Are my children covered?
Often cover for the life assureds children (between the ages of 6 Months and 18 years) is included in these policies. Normally, as a percentage of the total cover, and up to a maximum amount, of say £25,000.

How much cover do I need?
As a guide, you should aim to have enough critical illness cover in place to ensure that your mortgage and any loans could be be repaid in the event of you suffering a critical illness.

It would also make sense to have a further amount of at least 2 times your salary available to help to pay for specialist medical treatment, alterations to your home should they be required, and to provide financial security whilst you are ill.

How much will it cost?
The cost of critical illness plans will vary according to age, sex, sum assured and the term of the policy.

Am I paying too much?
Over the past few years, protection policy premiums have reduced significantly.

If you have an existing life assurance plan, critical illness or income protection plan in force, use our FREE quote service, to establish if you can save money on your current policies. After all, why pay more than you need to! For more information call us on 0845 226 4823

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