Why do you need life insurance or critical illness cover?
Would your dependents be financially secure if you died or became critically ill tomorrow? It might not be a pleasant thought, but it’s an important consideration.
You may not want to contemplate your own death or illness but think of the consequences. Would the futures of your partner, children or anyone else financially reliant on you, be safeguarded? Yet you can provide them with reassurance relatively simply, should the worst happen, through life and critical illness insurance.
What is life insurance?
Life insurance pays out a lump cash sum or a regular income to your dependents should you die during the term of the contract. This is why it’s usually called ‘term’ insurance. You choose the amount of life cover you need and how long you need it for, and pay your premiums monthly or annually.
You may wish to limit the cover to when your children are growing up at home but such calculations are not always easy to predict. If you wish, Prima Protect can offer advice to help you decide on the amount and duration of your cover. The cost of your life insurance will be determined by factors including your age, lifestyle and health. For example, smokers will normally pay more for cover than non-smokers.
What is critical illness insurance?
As well as protecting your dependents against your untimely death, you can also get cover should you be struck by a critical illness such as a stroke or heart attack. The illnesses that qualify for cover are clearly listed in each policy and can include certain kinds and stages of cancer and multiple sclerosis.
It’s essential that you read these conditions carefully before signing up for the policy and Prima Protect can advise on this. The illness may be critical to you but you won’t be covered if your chosen insurers don’t include it in their cover. This can even apply to certain types of cancer.
How does it critical illness insurance work?
If you get a critical illness that is listed in your policy, it will pay out a tax free, one-off payment which can help fund your mortgage, rent, debts or alterations to your home you may require because of your condition. It will make a single payment and then the policy ends.
You probably won’t be covered for pre-existing conditions you were aware of before you took out the policy, and this type of insurance does pay out if you die, for which you need life insurance.