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Critical illness insurance can provide peace of mind and reassurance that should you suffer a serious illness you will be financially secure. When you purchase critical illness insurance you are basically entering into a form of contract with an insurance company such as BUPA. As long as the premiums are regularly paid, normally on a monthly basis, the insurance company such as BUPA will pay out a tax-free lump sum if you were to suffer one of the conditions specified on the policy details.
BUPA Critical illness and Legal and General critical illness insurance can be purchased by it self or combined with life insurance. BUPA Critical illness and AXA critical illness insurance with life insurance will pay out on diagnosis of a specified illness or if you should die. However, a critical illness with life insurance plan will only pay out once. So therefore, should you suffer a critical illness you will receive the tax-free cash lump sum but then the plan will cease to exist and you will no longer have life insurance.
BUPA critical illness - BUPA critical illness insurance - BUPA critical illness cover
There are several advantages to purchasing a BUPA critical illness with life insurance plan;
- Generally, most companies stipulate a ‘survival period’ during which a claim will not be paid. A survival period can be anything from day of diagnosis up to 30 days. If you were to die during the survival period a critical illness plan will not pay out. Therefore, if you had a combined policy, critical illness with life insurance, the plan will still pay the tax-free lump sum on the life cover component of the plan.
- Additionally, a combined policy tends to work out cheaper than purchasing critical illness cover and life insurance separately.
As with any type insurance there are a number of different insurance companies that provide protection insurance such as, critical illness cover, life insurance and critical illness with life insurance. Due to this there are variations in not only price but cover
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