Why we Choose Critical Illness Cover????

Posted by Rafia / at 2:31 PM / / 0 comments

Serious medical problems can affect many people throughout their lives, and no one can predict what the future will hold. As many people, particularly those of an older age, may have a number of dependents or responsibilities it can pay to think about putting a safety net in place. Critical illness cover is one of these options, and may be more effective than relying on the off chance of investments paying off or of savings being adequate in the event that someone is seriously ill in later life.

This is a kind of personal insurance which will payout in the event somebody suffers a serious medical condition, which is not necessarily fatal. Normally the things which are covered include cancer, stroke, a heart attack or more or multiple sclerosis. This is different to a health insurance policy which simply pays for any bills which are run up during private treatment of a problem.

Critical illness cover is also not the same as some payment protection deals which provide somebody with cash support who can't work because of ill health. Essentially a critical illness plan will pay a lump sum of cash upon the diagnosis of a problem which can be spent just how the policyholder wants.

Often people will use the money to pay for some of the essential costs which may become a problem including the care of children or simply to replace the whole of someone's income. One of the main benefits of this kind insurance is that there is normally no condition put on how the money is spent-the policyholder who gets the payout can either choose to give some of it to somebody else, or keep all of it themselves.

People who take out life insurance will often include a critical illness element in the policy. It's a common attachment to many deals, and while life insurance will payout a lump sum in the event of someone's death, the critical illness part will payout in the event somebody faces a serious medical problem.

Of course not every single medical condition will result in a payout and this is something to bear in mind. Insurance companies will often supply an exact definition or list of what is protected on the policy. If somebody is unsure about what is protected, they should ask and can request a definition in writing. One important thing to bear in mind is that pre-existing medical conditions may not be covered by a policy.

This normally refers to medical problems which somebody was suffering with before they bought the insurance, including asthma or perhaps diabetes. Should they face a worsening of these illnesses in future they may not be able to claim on the policy. Alternatively, the insurance company may allow somebody to specify conditions which are pre-existing and get cover for them for an extra fee.

Critical illness cover can't solve future health problems but it can ease financial pressure at a very difficult time and could fill gaps which may otherwise appear and affect a policyholder's loved ones. Premiums depend on the amount of payout and the circumstances covered - but could be quite reasonable depending on the deal and how you get it.

How Life and Critical Illness Insurance Work Together

Posted by Rafia / at 2:25 PM / / 0 comments

Life and critical illness insurance are often mentioned in the same breath because they are sold as a package by insurers, although it is possible to get one and not the other. Life insurance in its most basic form involves a straightforward payout to a named beneficiary in the event of the policy holder's death, while critical illness insurance will pay out in the event that the policyholder is diagnosed with a serious but not necessarily life threatening illness.

The idea with both types is to provide financial support for either the policyholder or loved ones in the event of a tragic and distressing event such as a death or serious illness. Both events can be life changing for those concerned, and financial support from an insurance policy can be used to cover everything from basic funeral costs right the way through to healthcare or simply to replace the lost wages of someone who has died, effectively filling the gap left by the lack of the main bread winner being in the house.

Life insurance on its own comes in many different forms and the most basic is level term cover, which involves a guaranteed amount of payout running right the way through the length of the policy. The amount won't change over time and if somebody does need to claim then they'll get the full amount. However, the amount of cover will be for a fixed period only and not right the way up until someone's death, whenever that may be. For a payout to be made on this kind of insurance the claim will have to be made i.e., the person will have to die, within the set policy period. Even if somebody died only a few days after a policy expires, they would not be covered.

Other types of life insurance will involve a payout which decreases over time in line with someone's mortgage, effectively providing a safety net for a loved one who may be left with an outstanding home loan in the event of someone's death.

Critical illness insurance is often attached as a bolt on to life insurance and is similar to life cover, but pays out not in the event of death but the event of diagnosis of a serious but not necessarily fatal medical problem. Some examples might include cancer, multiple sclerosis, or a similarly serious condition. For a full breakdown on this you can ask the potential insurance company.

The benefits of this mean that somebody can spend the payout just how they wish, perhaps spending some of it on private treatment and some other on a holiday, or simply giving some of it to loved ones. There is no condition normally put on how you spend the money which comes from critical illness insurance, just in the same way there is normally no condition put on how the beneficiary spends the money from life insurance.

Life and critical illness insurance can be combined together to provide a kind of last resort safety net against tragic circumstances which could leave somebody's loved ones in a financial mess or could mean that somebody diagnosed with a medical problem in the latter stages of their life finds themselves in financial difficulty or would prefer private treatment but simply can't afford it.

Do You Really Need a Critical Illness Cover???

Posted by Rafia / at 3:24 PM / / 0 comments

When looking at life cover, the option of taking critical illness cover often comes up. But do you really need this type of policy? When looking at the statistics of men and women in the UK in relation to who will suffer a long term critical illness, the answer is a resounding yes. There is a 1 in 4 chance that a woman will suffer from a debilitating illness, and a 1 in 5 chance that a man will be diagnosed with a serious condition. With those kinds of statistics, can you really afford not to take out critical illness cover on yourself and other members of your family?

Critical illness insurance may not change the odds of you becoming sick with cancer, developing blindness or needing a major transplant surgery, but it will certainly help with the potential for financial ruin if it does happen to you. With a long term serious illness you may not be able to work or you may have large medical bills that you are unable to pay. With critical illness cover you won't have to worry about these things. The lump sum of money that is paid to you will take care of things like your mortgage, education for your children, financial support for your spouse, as well as things like medical bills, at home medical care, and so much more. So that even if you have to leave your job you will be able to provide the same kind of lifestyle that you are used to without causing undue stress and worry.

The risk is too great in life to not be prepared for everything that may come your way as you get older. It is essential that you make sure that you have your financial future taken care of with something as simple as illness cover.