|
Most providers of the cheapest critical illness cover will cover anyone between the ages of 17 and 70 years of age. Generally, as a rule of thumb the younger you are at the time of taking out critical illness cover the cheaper the monthly premiums are likely to be. However, the final cost of the critical illness insurance you are looking for will be dependent upon the underwriting of the information provided on the application form. Therefore, the initial critical illness quote that you are given, may not necessarily be the final price you pay. You must also compare life and critical illness cover.
There are two main types of the cheapest critical illness cover; term (level) critical illness insurance and mortgage (decreasing) critial illness insurance. Both will pay out a tax free lump sum should you be diagnosed with a critical illness that is covered by your particular policy. In the case of term (level) critical illness insurance the sum assured remains the same throughout the life time of the plan. Whereas, with a mortgage (decreasing) critical illness insurance, the sum assured decreases by an agreed percentage each year for the term of the plan you will see this if you compare life and critical illness cover.
Covered by critical illness cover - Critical illness cover claims
Term critical illness insurance is normally taken out to cover an interest only mortgage, loan, debts or for personal/family protection. Mortgage critical illness insurance is generally to cover a capital and repayment mortgage, loan and/or debts. However, you do not have to take out either critical illness insurance cover for these purposes. What you have the critical illness cover in place for is entirely up to you.
On a like for like basis a term critical illness insurance will work out more expensive than a mortgage critical illness insurance as the sum assured is remaining the same throughout. Additionally, the greater the sum assured and/or life time of the plan the greater the overall cost will be. Ideally you want to aim to get the right cover for you within your budget. If you are unable to meet the monthly premiums you risk being taken off cover. Therefore, you may as well have a little amount of cover that you can afford than none at all. That way you will know you have some financial security should you suffer one of the specified critical illnesses after you have been to compare life and critical illness cover.
|
