Critical Illness Policy

We all face the challenge at some point in time of reviewing our financial protection. With more responsibility whether it is bringing a new person into the world or your first mortgage, the more important our financial protection becomes.

We often come to consider critical illness insurance when looking into life insurance. Where life insurance is limited to paying out on death a critical illness policy provides a tax free cash lump sum and can be tailored to your specific requirements.

Whether it is cover for a specific loan, or just the peace of mind knowing your financial obligations are covered should you suffer a serious illness a reputable plan can provide the necessary protection.

Making sure of a competitively priced critical illness plan is like finding the best deal on any other insurance, utilise resources available and shop around.

Researching online you can gain a good foundation of the leading providers and their products. By requesting quotes from a variety of insurers you ensure yourself a well priced policy.

Each insurer will conduct their own methods of underwriting a policy which means one may well look upon you in a more favourable light than another resulting in you finding better rates.

For information regarding the regulation of the insurance market visit the Financial Services Authority website.

The FSA also provide a site to help consumers with money and insurance matters, an overview of critical illness insurance can be found in their insurance section.

The monthly premiums like so many other health related insurances are dependant on a number of personal factors and the cover you decide upon. Personal factors insurers take account of when quoting include your age, whether you smoke and any pre-existing conditions.

As we age so our likelihood of suffering a critical illness increases. Insurers use this in their quoting mechanism which unfortunately means the older you are the higher your premiums will be.

Smokers get stung by their habits at both ends, not only does a packet of cigarettes cost a small fortune these days you will also incur inflated premiums on your insurance policies to account for the additional risk.

Pre-existing conditions can affect the premiums quoted and the cover provided by the plan, it is vital you disclose any information you feel would be important for the insurer to know, failure to disclose a condition could result in your policy being void.

A single life policy is designed to cover a single person. A joint life plan covers a mortgage which has been set-up in joint names.

A joint life plan covers two lives but will only pay out once, on the first event. Please note if there is a claim on a joint life policy it will automatically terminate, the survivor is no longer covered by the policy.

Guaranteed premiums provides the peace of mind of a fixed cost for the life of the policy, your premiums will not increase at any time during the term of the policy.

Opting for reviewable premiums provides the insurer with the opportunity to review the risk of your policy and the premiums every 2 to 5 years.

At policy commencement guaranteed rates are higher than reviewable however over time guaranteed premiums tend to work out cheaper as they are fixed from the outset.

Total and permanent disability (TPD) benefit is a specific condition of a critical Illness policy and generally has to be selected as an additional option.

Including TPD in your plan covers you if you are totally and permanently unable to work.