Many people take out this cover when they take out a new mortgage in order that their debt can be paid off if they become critically ill or if they die. But what are the benefits of critical illness and life cover? And what should you look for when you research life insurance critical illness cover quotes?
What are the benefits of critical illness and life cover?
Critical illness and life cover policies tend to be written on a ‘first event’ basis. This means that the policy will pay out on death or the earlier diagnosis of a critical illness. It won’t pay out on both events.
In either event, the policy is diagnosed to provide a tax-free lump sum on the event of your death or if you are diagnosed with a condition covered under the policy. It gives you the peace of mind that you’d be able to repay your debts or leave a lump sum to your family if the worst should happen.
One of the advantages of buying life insurance with critical illness is that such a policy can be cheaper than buying two separate policies.
Bear in mind however that a policy that offers both critical illness and life cover will only ever pay out once, while two separate policies could theoretically pay out on both diagnosis of a critical illness and on death.
What to look for when you compare life and critical illness cover
Lots of insurers offer life and critical illness insurance quotes and so it is important to compare both the cost and the quality of cover before you buy.
One of the most important factors you should take into account when you compare life and critical illness cover is the range of conditions that are covered under the policy. A cheap policy may only cover a few conditions while a more comprehensive policy may cost more but should offer you better coverage.
It is sometimes worth considering paying a little bit extra for your policy in order to ensure that you are fully covered against a wide risk of illnesses.
In addition, some of the best life insurance critical illness cover policies include ‘children’s cover’. This is where you are able to make a claim on the policy if your child becomes seriously disabled or critically ill. If you have children, make sure you check whether this cover is included.
Look for the policy that offers the combination of a suitable lump sum payment to cover your financial commitments, cover for a wide range of illnesses and a competitive quote.
It's also worth checking the terms and conditions to ensure that the policy will pay out if you need it to.