Life And Critical Illness Cover

Life and Critical Illness Cover: Combined Policy for Wider Coverage

Life insurance is decidedly one of the most important investments that you will have to make if you are to make certain that you and your family are prepared for any unforeseen circumstances. These days, most companies combine life and critical illness cover to provide a wider, possibly cheaper range of protection.

Benefits

Taking out life insurance bundled with critical illness cover is advantageous because not only do your beneficiaries receive a payout when you pass away, you also get to claim when you are diagnosed with a critical illness.

The payout from your policy can be used in several ways. Some people use it to pay off their mortgage. A death in the family often results in a loss of income and a mortgage is usually burdensome to deal with as it usually involves a huge amount of money.

It can also be used to cover other financial obligations such as health care costs if you suffer from a serious ailment, everyday living expenses as well as costs associated with your passing on.

Cover Options

When choosing life and critical illness cover you can choose between level term and decreasing term insurance. With a level term coverthe assured sum stays fixed for the entirety of the policy so that when your family makes a claim, they are guaranteed the full amount that you chose to be covered. Depending on the insurance company that you take out the policy from, your monthly premiums may also remain fixed for the duration of the term.

With a decreasing term policy, the monthly premiums that you pay stay fixed for the duration of your policy but the sum assured will be reduced over time. The money claimed under this policy is usually utilised to pay off mortgage debts.

What to Look Out For

Whilst life and critical illness cover provides extensive protection, it is important to note that not all types of diseases will be covered under a given insurance policy. There are policies that cover as many as 30 illnesses whilst packages from other companies can cover as little as 14 serious conditions.

There are newly established rules that restrict claims made on certain illnesses. For instance, whilst cardiac conditions and cancer are covered under critical illness policies, certain mild cancers and heart conditions such as angina are excluded.

It is important that you disclose all health-related information when applying for this type of insurance. Should you be found to have omitted relevant information, this could be grounds for policy nullification.