Can I get life insurance and critical illness cover policies in one package?
The simple answer is yes you can! Critical illness cover policies can be purchased as stand alone or as an addition to a whole or term life insurance policy. You will probably have to make the decision to include critical illness cover when you take out your policy as it may not be something that can be added at a later date.
Critical illness cover life insurance is in effect closer to medical insurance than life insurance in that the money is paid out to you whilst you are alive in order to help you to live. If you are a homeowner you may have mortgage repayments to make that you will still have to fork out for even if you are ill. If your illness stops you from working you might find it difficult to afford costs such as this and this is where a critical illness policy comes into full effect. The pay out that you will receive upon diagnosis of a critical illness ensures that you will be able to meet your living costs whilst you are ill and this will hopefully leave you in a better position should you fully recover from your illness.
You must make sure that you are aware of the terms of the insurance policy, particularly with regard to the illnesses that are deemed by the insurance company to be ‘critical’. In addition to the illness itself there are other factors that will determine whether or not you will receive a payout should you suffer from one of the listed illnesses in the future. These factors include the treatment method and how the illness/disability was contracted. For instance, if you choose a treatment method that is likely to lead to another serious illness the insurance company may not pay out.
The danger with all-in-one life insurance and critical illness policies is that a critical illness pay out whilst you are alive might mean that your beneficiaries don’t receive an additional payout should you die from the illness/disability. However if you take out a stand alone critical illness policy you will receive two payments.
In most cases you will only be able to take out a critical illness life insurance policy if you are under the age of 60. In some cases coverage may continue beyond your sixtieth year but not all so you need to make sure that you read all the terms and conditions before you commit. Critical illness coverage is a very good option to take out on a term life insurance policy. Although you may not die before the end of the policy, if you have been diagnosed with a critical illness during the policy’s term you will receive a payout (providing of course that your illness is listed in the terms of your insurance). You wouldn’t have received this payout had you not taken out the critical illness option and if you outlive your policy you would effectively have wasted a lot of money. If you are unable to work during your illness this could be doubly frustrating.
Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.