So Choose Your Critical Illness Insurance Wisely

Category: Finance, Insurance.

Critical illness insurance is one of the most common types of insurance policies in the UK.

Back in the year 1990, critical illness cover started to make a success in the insurance industry due to direct sales forces. Since critical illness insurance was brought in the UK during the mid 1980 s till now, there has been a lot of evolution. Thus, by the end of the year 1998, around 25 million critical illness policy sales could be counted in the UK. According to www. tickbox. net, about 72 percent of people in the UK are yet to have a critical illness cover. Nowadays, there may be no exact figure of the total number of critical illness cover sales. There may be various reasons why people do not have a critical illness cover.

Also, many people might not be fully aware about how critical illness insurance can help. People might have bought another form of insurance policy like life or mortgage protection insurance. Additionally, many people may be unable to afford premium payments related to the benefits they want from critical illness cover. The Association of British Insurers says that you must either pay a premium for the critical illness cover either each month or each year. Let s have a look at premium payments. This depends upon the agreement you had made with your insurers before booking the deal.

Paying monthly premiums may be affordable but when this accumulates for 12 months the payment might seem huge to make. You should think well about which option to choose. Basically, the amount of cover you want from critical illness insurance may depend on the amount of premium you are ready to pay. As long as the critical illness policy will stand, premiums might increase. Remember that premium payments may vary according to your health, sex, age, whether you are a smoker, the amount and type of cover you want and how long the cover will last. The reasons and possibilities for the increase might be clearly explained in the key features leaflet.

Furthermore, many insurance companies may allow you to take critical illness cover if you fall between the age range of 18- 6Your insurers may also check your health status. On the other hand, there are also other existing policies which might promise to never level up the premium payments. If you are in good health you may be more likely to be eligible for critical illness cover. This joint account may protect you and your partner simultaneously and may pay out a lump sum when any one member falls critically ill. Besides, most companies may offer you the choice to buy a joint critical illness account. This might be an advantage as both members may not have to pay out separate premiums for separate critical illness policies. This can help during periods of inflation or when you get married and form a family, that may get you involved in bigger responsibilities.

In addition, some critical illness insurance companies might also allow you to enhance your cover. If you had chosen this option before taking out the critical illness cover, you may find your premium payment values increase according to the cover. But this may mean that you provide updated information about your health before the company decides whether to give you the extra cover or not. Other companies might offer you the liberty of widening the cover at any time. When you buy critical illness insurance do not always choose those with the cheapest price tags. Not all low priced policies offer many benefits. I am sure you would not like the idea of your claim being rejected at the most crucial moment.

So choose your critical illness insurance wisely.