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Choosing the Right Critical Illness Insurance Policy

Date Added: January 07, 2013 11:59:04 PM
Category: Finance: Insurance

It has been estimated that almost 25% of women and 20% of men will suffer from a serious illness before they reach retirement age. However, the right Critical Illness policy can provide a tax free lump sum on diagnosis of a serious illness or disability that will remove some of the stress that worrying about financial problems during an illness can create.

What the Policy Covers
As with all types of insurance policy, the greater the cover the higher the premiums.

On average, critical illness insurance policies will cover approximately 30 of the most common serious medical issues. However each policy is different.

Balance out the cost of the premiums with the level of cover required. The cheapest option may not be the best, but paying to protect against rare and wonderful foreign diseases may be just as financially unsound.

Read the Small Print
The severity with which an illness must be experienced before a claim can be made and the exclusions that can incur for any previously experienced conditions can be the key differentiators in choosing the right policy.

Before taking up any new insurance read the small print in the Key Features document and understand exactly what is covered and what exclusions exist.

Who Is the Policy For?
Though many individuals take out Critical Illness cover insurance to protect their families from having the financial strain or physical burden of care when the worst happens, those that live on their own should also consider serious illness cover as a vital form of financial protection.

Without such insurance to pay off the mortgage or cover debts when an illness is discovered, a patient who has no one to help them financially may find they use valuable energy worrying about how to pay their bills when they are sick rather than focusing on getting better.

The Future Cost of Cover
As both the age of the policy holder and advancements in medical technology can have a huge impact on the price of Critical Illness Insurance, assess whether the premiums payable are fixed for the duration of the policy or whether revisions can be made by the provider.

Though a fixed premium policy may be slightly more expensive in the short term, it can become highly cost effective if the policy is due to continue for many years.

The Duration of the Cover
Most people between the ages of 17 and 70 are eligible for Critical Illness Cover. It can be acquired to insure the health of the policy holder for a specific period, such as the length of a mortgage, or can be taken out indefinitely.

The sooner a policy is started the lower the risk to the insurance company and therefore the lower the initial payments charged, therefore taking out critical illness cover earlier could be more cost effective and provide protection quicker.

Who Is Covered
Though initially critical illness policies were introduced to cover one sole individual, it is now possible to obtain policies which extend to spouses and children. These policies can offer great savings on obtaining insurance agreements separately and should be considered for those who wish to protect their entire family.

Where To Buy
There are many options when it comes to purchasing your insurance policy such as going direct to the insurance provider or even speaking to an independent financial adviser. But the best way is through an online independent insurance broker such as who can compare quotes from the whole of the UK market and offer you sound, impartial advice. This way you can ensure that you have the right policy at a very competitive price.

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