Critical Illness Cover |
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Critical Illness Insurance GuideCritical Illness insurance is designed to pay a lump sum which is tax free in the event that the insured person is diagnosed with a pre-defined condition. This Critical Illness Insurance guide is written to help you understand what critical illness cover does and how it fits into the range of protection products you available to help you in times of crisis. The importance of Critical Illness cover cannot be overemphasized. This insurance plays a vital part in protecting you in the event of unexpected inability to work. BUPA research shows that about a quarter of those over the age of 30 and under the age of 60 will suffer a critical illness. In this Critical Illness guide we will explain what this insurance covers and what is excluded. We will also discuss the main types of critical illness cover; level term and decreasing term, the reasons for choosing these and how these affect the cost. Typical exclusions for critical illness insurance include items such as major organ transplants, some types of cancer, Multiple Sclerosis, stroke, heart bypass or kidney failure. As with life insurance there are two main categories of life insurance, level term critical illness insurance and decreasing term critical illness insurance. Critical Illness Insurance Guide – Level Term:With level cover there is a guaranteed amount which is covered that remains throughout the policy term. the amount you choose to protect is guaranteed to remain the same throughout the policy. As the amount doesn’t change over time this is often taken up with interest only mortgages, where the principal is not reducing. Critical Illness Insurance Guide – decreasing term:With decreasing cover there isn’t a fixed or guaranteed amount to be paid out as there is with the level term version of the insurance. With level term life cover the amount of the payout will reduce over the period of the policy. Usually this is not advisable with interest only mortgages and is taken up with those who choose repayment mortgages The benefit to you is peace of mind that you have understood and answered all questions compliantly. If you would like more information please fill out our quick enquiry form and a specialist adviser will be in contact shortly.
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