Critical Illness Life Cover

An Extensive Look at Critical Illness Life Cover

A critical illness life cover is essentially a form of insurance that provides financial assistance in the event you fall into a serious illness. Hence, the cash received is commonly used to pay for medical and hospital fees. In the UK, a critical illness life cover is very popular. The details below offer a comprehensive and technical study at this wonderful form of insurance.

Who are qualified to purchase one?

If you are aged between 18 and 59, you’re immediately qualified and your cover can last up until the age of 70. Employment background is not even required just as long as you can prove you’re capable of paying the premiums. Moreover, you can also insure your children if they are below 18, subject to certain terms and exclusions.

How much does it cost and at what level of protection?

Both factors depend on the applicant’s age, occupation and medical history. Like a typical life cover, age is a critical factor as people who are older are prone to certain illnesses, so they have to pay higher premiums than they otherwise would have if younger. Occupation, meanwhile, determines your paying capacity. For instance, if you’re a homemaker or unemployed, the maximum benefit insurers can provide you is 2 ½ times your partner’s wages. The minimum subscription available is £6 a month, as this is the computation for a 25 year old male with no pre-existing conditions.

Types of cover

Insurance companies provide you the flexibility to select a wide range of types for your critical illness life cover. Below are the top three forms in the UK.

Level Term - Both premium payments and lump sum amount are fixed for a period of time between 5 and 40 years.

Mortgage protection – Operates for the same number of years as with the period outstanding o your mortgage. While all figures in a level term remain constant, the benefits in a mortgage protection reduce every year, aimed to coincide with your decreasing mortgage.

Renewable term – This is probably the most popular form of critical illness life cover as it provides more control to the applicant. Everything feature is similar with a level term cover, with the exception of its period. A renewable term’s period ranges from 5-10 years.

Additional features

Most insurance companies in the UK offer an increase in the critical illness life cover in accordance with some milestones in your life. For instance, if you get married and have a child, or you get promoted at work, your cover may increase by 25% or £50,000, and up to 100% or £100,000. Your cover can be further enhances with several other features, including fracture cover, reinstatement cover, disability cover, and waiver options. GP