Critical Illness Insurance

Critical illness insurance essentially provides a tax-free lump sum payment should you suffer any of the specified illnesses named in the plan. Whilst none of us know if we have a greater likelihood of being affected by a specific critical illness, it remains a probable that we, or someone we know close to us, will suffer from some form of critical illness at some point in our life.

The key question now is how would you and your family or dependents manage financially if you were to become seriously ill? If you are the main breadwinner, for example, will your income be missed? Being diagnosed with a critical illness and having to go through the treatment that maybe ahead will be stressful enough, without having the added financial burden of mortgage interest, paying bills, living expenses and in some cases even adapting your home.

It is a common misconception that that critical illness insurance is expensive and difficult to obtain; there are a large range of critical illness insurance plans that are designed to suite your needs and your budget. This is where it is crucial to get the correct advice before buying critical illness insurance from a properly qualified insurance broker, and not simply rely on an internet price comparison site. Arranging critical illness insurance is a skilled business where our brokers will talk you through the range of options and make recommendations based specifically on your circumstances, budget and preferences. This simply cannot be achieved by a simple calculator on a website. You may have specific questions or concerns regarding critical illness insurance that you need allayed, or indeed you need to pose a series of “What if...” scenarios.

When speak to one of our insurance brokers, you will need to have some idea of the amount of critical illness insurance you are looking for (the sum assured) and the total term, i.e. the number of years you would like the cover for, and whether you want it on a decreasing or level basis. The greater the sum assured, the longer the term, and thus the more expensive the critical illness insurance covers. Also, a level (term) critical illness insurance plan will be more expensive, in general,  than a decreasing (mortgage) plan as the sum assured stays the same for the duration of the cover, rather than decreasing by a set percentage each year. The monthly price given at this stage is known as the standard premium. However, this is subject to change depending upon the additional information that has to be provided to finally purchase the critical illness insurance.

As mentioned, there are two types of critical illness insurance policies:

·         Term (level) critical illness insurance

·         Mortgage (decreasing) critical illness insurance

The important difference between the two critical illness insurance policies is that the sum assured for the term or level insurance stays the same throughout the lifetime of the plan, whereas for the latter, mortgage critical illness insurance, it decreases over the period of time the plan. The type of cover you may get a quote for, along with the benefit amount and term, number of years the cover is taken, is entirely up to you and your circumstances. You may wish to consider these deciding factors:

Family situation: If you are the main provider of income in your household you may wish to have a guaranteed lump sum to ensure you can meet financial commitments should you suffer a specified critical illness. Having a term critical illness cover means you know exactly what you will receive at any point in time during the years you are covered.

Budget: One of the most important considerations is the affordability of the cover. You have to fit critical illness insurance payments within the monthly finance budget, as if you can’t keep up with the payments for any reason, you will cease to remain on cover. In an ideal world we would like to cover our mortgage, loans, debts and provide ourselves with an decent income. In this way we would hope we would have no ongoing financial uncertainties and can concentrate on getting well. However, this critical illness insurance policy for many of us will not always be affordable. But some cover is better than none, and it will always  go some way to alleviating financial concerns, even it is just to pay off the mortgage or provide an income to live on for a period of time.

Type of mortgage, loan or debts you wish to cover: For example, if your mortgage is on an interest only plan, you may want to consider a level, rather than reducing plan, to the value of the mortgage.

Level Vs Decreasing plan: Generally, a decreasing (mortgage) critical illness insurance works out cheaper than level term critical illness cover on a like for like basis, as you would expect. Essentially, this is because the benefit payable if you were to make a claim is reducing the further into the lifetime of the plan you go. Whereas with a term critical illness plan, the insurer is always going to have to pay out the same amount, regardless of when a claim happens.

Whatever you decide, we’ll do our best to get you most suitable critical illness insurance. When you speak to one of our brokers for buying critical insurance plan, we complete just one application form and one payment regardless of the covers you choose. This means less paperwork and less hassle for you, leaving you with the peace of mind that you have given yourself adequate protection for you and your loved ones by purchasing a right critical illness insurance plan.

So to get a quote for the critical illness insurance policy immediately, just give us a call on 01424 405 373 and we will provide you with free, no obligation advice on suitable critical illness insurance policy. Critical illness insurance is simple to arrange and cover can start straight away for far less that you may think. Our brokers are there to deal with your queries on critical illness insurance policy professionally and discreetly.

Go ahead and call us today.

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