FAQ Home | General Questions | Critical Illness Insurance | Life Insurance | Home and Contents
Mortgage Payment Protection | Mortgage Life Insurance | Short Term Income Protection Insurance
Mortgages | Car Insurance | loans | Private Medical Insurance | Travel Insurance
What other benefits can be added to a Critical Illness policy?
Life cover is a must. Then consider Waiver of Premium and Indexation.
Hot Topics
How’s this for a benefit? It is probable that if you combine Life and Critical Illness insurance into one policy it will be cheaper than buying Critical Illness alone! This is because the insurance companies can apply various internal company tax allowances to their pricing of combined policies but these allowances are not available for stand-alone Critical Illness policies. It doesn’t always work out cheaper but for most people it is.
And there’s another big advantage for buying a combined policy. With these policies the insured sum will be paid out on a claim for either death or critical illness (not both). The original reason these combined policies were designed is that a critical illness could be diagnosed and the individual dies before the policy’s “survival period” is completed (for a Critical Illness claim to be valid you need to survive for a set number of days following diagnosis. This survival period is normally 28 days but some insurance companies have reduced the survival period to 14 days). If you died within the survival period any claim would, therefore, be invalid. However, if you also had Life Insurance cover the claim would be valid under the conditions of the Life cover.
Waiver of Premium
With “Waiver of Premium” your insurance company pays your monthly premium for you if you are sick or have had an accident.
This option is will only available at the time of application and if you are under 55 and in full time employment. It cannot be added to any existing policy you may have.
Indexation
Indexation should be added if you want your sum insured to increase in line with inflation. It thereby protects the purchasing power of the sum you have insured for.
Each year your insurer works out how much your cover needs to increase by and then they automatically adjust your policy. Your monthly premium will also increase in proportion to the increase in your sum insured. (Please note: you don’t need Indexation if you are using this policy to protect a mortgage.)
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- Why are the insurance prices on the Internet so low?
- Is the price you’re quoted, the price you pay?
- Is it best to have guaranteed or reviewable premiums?
- What causes delay and can delays be reduced?
- Once you’ve got your quote, what’s the next step?
- Can the critical illness policy be continued after a claim ?
- What happens if your condition improves after a claim ?
- What happens if your condition deteriorates after a claim ?
- What happens if you develop another critical illness after a claim ?
- Go to menu of Frequently asked Questions about Mortgage Life Insurance
- Go to menu of Frequently asked Questions about Life Insurance
- Go to menu of Frequently asked Questions about Critical Illness Insurance
- Go to menu of Frequently asked General Questions