Life Insurance Plan and Critical Illness Cover

How About Taking Out a Life Insurance and Critical Illness Cover?

Thinking about passing away is not particularly a pleasant prospect, but as you get older, concerns such as this must be carefully attended to because you don’t want to leave your dependents in a financial ruin do you? It is this fear that drives parents and breadwinners to take out a life cover. While it is critical to insure yourself from the inevitable death, people often forget another important fear that must be addressed; the fear of falling into a serious illness. Like death, a serious illness can provide a person and his family financial problems as hospital and medical bills tend to skyrocket in unbelievable heights. One of the simplest ways of taking care of this is to take out a life insurance plan and critical illness cover.

How does a critical illness cover work?

A critical illness cover is essentially a contract where the insurer is obliged to make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses recorded in the insurance policy. However there are some variations to the way cash is settled. One structure allows a payout of regular income, usually on a daily basis, in the event the policyholder is undergoing a surgical procedure. Also, the policy may require the insured to endure a minimum number of days from when the critical illness was first diagnosed. This survival period varies from one insurer to another, but here in the UK, 26-28 days are the most common period used.

Illnesses covered

It is important to consider what you expect the life insurance cover and critical illness cover to protect against, as insurers are quite strict and specific over the illnesses covered. Most life cover deals provide payouts for common serious illnesses, but demand additional premium to cover a list of specific conditions. Below are the most common illnesses covered.

Blindness

Deafness

Kidney Failure

Multiple Sclerosis

HIV/AIDS

Alzheimer’s disease

Parkinson’s disease

Organ transplant

Terminal illness

Paralysis of limb/s

Important reminders

Taking out a life cover with critical illness assurance involves providing the insurer with your comprehensive medical history as well as undergoing a full medical examination. Also, be absolutely aware that insurance companies do not give payouts to a pre-existing illness. Hence, it is essential that you are as honest as possible because failing to disclose a pre-existing condition would leave you empty handed. Other than that, go take out this plan immediately as a life insurance plan and critical illness cover provides maximum protection for you and your loved ones. GP