There Are Some Illnesses More Critical Than Others

Summary

 

The issues you should mull over when taking out critical illness cover and the varietyof companies tendering thistype of policy.

 

Your mortgage provider may give you quite a few financial products together with critical illness cover. On the other hand, as they are not specialists in this field, you will probably find a superior offer somewhere else.

 

The level of cover on offer is just as important as the premium when looking forcritical illness cover. The policies from Alliance and Leicester and Nationwide are extremely limited says a Director at Tesco Finance, a telephone and online life assurance broker. Legal and General covers only eight critical illnesses, with Norwich Union covering just 9, whereas the market leader, Swiss Life, covers 38.

 

Blindness, deafness, loss of speech, diabetes, Parkinsons and Aids are some of the illnesses not covered by some of the big insurers. The advisersays that it does not warrant thinking abouta policy, which insures less than 24 illnesses.

 

An umbrella term incorporated in all policies is ‘total and permanent disabilities’, this term means you are covered for any condition, which prevents you working ever again.

 

You need to be alert to the wording as some policies cover ‘any occupation’ while others only cover your ‘own’ occupation. You will not get a settlement under a ‘any occupation’ policy unless you are completelyunable to carryout a job, however unskilled. Consequently The senior adviserrecommends you sign up for a ‘own’ occupation policy.

 

There are a range of companies as well as Swiss Life who offer full insurance including Scottish Provident, Scandia, Zurich life, Friends Provident, Scottish Equitable, Liverpool Victoria, Norwich Union, Legal and General and Zurich Life.

 

For many years Life Insurance   has been sold by mortgage companies. This has resulted in critical illness cover never being considered by many people. There are five times as many claims on critical illness insurance compared to life insurance, when the client has taken out both kinds of insurance.

 

Life insurance cover is extremely important, specially if you have dependents, as they will welcome the lump sum payment on your death. However critical illness cover should be the priority if you have debts to settle, particularly a home owner loan. The senior adviserconsiders critical illness to be vital as it covers the cost of your house and food, even if you are incapacitated and unable to work.

 

The premiums will be higher if you are a smoker and will also be more expensive if you are older. A decreasing term policy, which is targeted at people only wanting to insure the cost of their home owner loan, is the cheapest.

 

One of Spencer Knight’s customers, a 25 year old non-smoker, who required100,000 pounds cover from a critical illness, long term policy, was quoted 15 pounds 50 pence per month, which rose to 25 pounds 50 pence for smokers. However a senior adviserfrom Tesco Finance recommended a policy, which gave both life insurance and critical illness cover for 17 pounds 80 pence a month, so it could be worth paying a bit higher premium.

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