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What is life insurance?
Life insurance helps give your family financial protection should you pass away within the policy term. It lets you leave a lump sum behind – helping your loved ones maintain their living standards and/or pay mortgage costs.
In most cases, you can get life insurance even if you have medical conditions – you just need to tell us about them when we ask so we can find the provider who most suits your individual needs.
You can use it to cover one person (a single policy) or two people (a joint policy). It will only pay out once. So when the provider has paid a claim, the policy will end.
FAQ: Critical Illness Insurance
What is Critical Illness Cover?
Critical illness cover is an insurance product that pays out a lump sum of money when a specified illness is diagnosed during the policy’s term.
How Does Critical Illness Insurance Work?
Critical illness insurance provides financial protection in the event that you are diagnosed with a serious illness. It is often purchased alongside life insurance when applying for a mortgage, ensuring that you have a lump sum to help cover bills and even pay for treatment should you need it. If you already have life insurance, you can also buy critical illness cover as a standalone policy.
What is Covered on a Critical Illness Policy?
Critical illness policies usually cover illnesses such as cancer, multiple sclerosis, heart attack, stroke, blindness and deafness. Most policies cover over 40 different conditions, while more comprehensive policies may cover a wider range of additional conditions.
How Much Does Critical Illness Cover Cost?
The amount of the premiums is determined by factors such as age, health, occupation, hobbies, and lifestyle. Premiums are paid monthly, and if a claim is not filed during the policy’s term, the insured party will not receive any money back.
There are two types of Critical Illness cover:
- Reviewable Critical Illness cover undergoes periodic reviews, usually every 2-5 years, to ensure that the premium you are paying remains effective in providing sufficient coverage.
- On the other hand, Guaranteed Critical Illness cover maintains a fixed premium throughout the coverage term, remaining unchanged unless you modify the plan due to a change in circumstances.
Making a Claim and What to Expect
When filing a claim, it’s important to keep in mind that illnesses must often reach a specific severity level before the insurer will pay out. For example, if you’ve been diagnosed with cancer, the insurer may only pay out if there is medical evidence that the cancer has become invasive.
It’s important to provide the insurer with your complete medical history when purchasing critical illness cover. Depending on the policy, pre-existing medical conditions may not be covered. You’ll also need to figure out how much cover you require and consider any savings you already have in place, as well as any benefits that your employer may offer if you’re unable to work due to serious illness or disability.
What Else Should You Know?
In addition to covering adults, many critical illness providers also include critical illness cover for children at an additional cost. Lastly, it’s critical to read the policy’s fine print to ensure that you understand precisely what you are and are not covered for.
Income Protection
Income Protection Insurance is a financial product designed to provide a source of income replacement if the policyholder is unable to work due to illness or injury. In the event of such circumstances, the insurance policy pays out a regular income to the policyholder, typically a percentage of their pre-disability earnings, until they recover and return to work, reach a specified age, or the policy term ends.
It serves as a safety net, helping individuals and their families maintain their financial stability by covering essential living expenses like mortgage payments, bills, and other necessities during a period of income loss. The terms and conditions, waiting periods, and coverage specifics can vary among policies, so it’s crucial to carefully review and understand the policy terms before purchasing income protection insurance.
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