Critical Illness Cover - an additional option
Some life insurance cover may give you the option to select Critical illness. This is an insurance plan that pays out a tax free sum of money if you are diagnosed with a serious illness. The plan will only pay out for an illness listed in the cover, which typically includes:
- Heart attack
- Certain types of cancer
- Multiple sclerosis
The illnesses do vary depending on the provider so it is worth checking the policy conditions. You won’t be covered for any pre-existing conditions and there may be an initial exclusion period when you will be unable to claim.
Money paid out can be used to pay off mortgages or outstanding debts, help provide financial protection for families if you have to give up work or need to make changes to your home as a result of the illness.
Critical illness may be worth considering, especially if you are concerned about a certain illness but it will increase the cost of your life insurance cover so make sure you are comfortable with the monthly payments.
Life Insurance for Couples
If you are looking at life insurance for you and your partner, don’t naturally assume that buying ‘joint life insurance’ is the best option
The following 3 steps should help you decide:
Step 1 - Consider your plan options:
- Joint life insurance: provides cover for both but usually only pays out when the first person dies. Once it has paid out the policy will cease.
- Two individual life insurance policies: provides life cover for both of you but will be a more expensive option.
Step 2 – Think about your requirements:
- How much can you afford on a monthly basis?
- Do both of you need the same level of life cover or would two separate life insurance policies for different amounts be sufficient and cheaper?
- Is it ok if the surviving partner is left uncovered?
- Are there dependants that will still need protection?
Step 3 – Shop around
- Compare life insurance quotes for joint life insurance and 2 single plans to see how much they cost and level of cover provided
Our Life insurance comparison table will help you get quotes and compare life insurance with some of the leading life insurance providers in just a few minutes. Just click on the ‘get a quote’ button, answer a few questions and we’ll do the rest.
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