(This form can also be used to suggest web site links, alongside questions about cover, premium, etc)
Once my critical illness cover has started can I make any changes to the plan?
Choosing a protection plan can take some people anywhere from a couple of weeks to a couple of months to find the right one for them. Once a decision has been made as to what they actually want, it may not take that long for the policy to actually go though. However if they are undecided it may take the application process that bit longer.
A financial adviser will be able to give you a price as to what the monthly cost of the insurance could be, however the final premium price would be verified once the application had been confirmed by the chosen insurance provider. As there are many options as to why the price of the contract may change for example it would be unfair to fix a price of which the client believed was affordable and then it increase on acceptance.
A financial adviser can research the various different providers to ensure that the application is going to the right provider to start off with, therefore meaning they will hopefully offer the best terms for that specific application.
With critical illness insurance there are no or very few guarantees no matter how much research has been done before hand. The plan might not be offered on standard terms as there are many reasons as to why the cost of insurance does increase after the underwriting process of the critical illness cover. No matter what terms are offered an individual will get the chance to consider whether or not the policy is still required after the premium has been confirmed.
Circumstances change throughout our life and we have to face them head on. Some may be more serious than others, however if, in the future a client decides they want to make policy changes to either bring the cost down to a lower premium. Likewise to increase the cost of the insurance by increasing the sum assured of the plan or extending the term of the plan, this may be possible. It does not typically cost to make any changes to the plan which is in force, however some changes to the application may mean that the price is recalculated.
If for example you took out critical illness cover when you bought your first home it might then be based on the sum assured of what was borrowed at the time and therefore would cover you for however long you took your mortgage out over, however are you going to stay in the same house forever. If at some point you decided you wanted to move house whether it was to get a bigger house or move to a different area if you had to borrow more money this would mean you were liable for a larger amount than what your critical illness cover would cover you for. It would then be necessary for you to make the changes where by the insurance would cover you for any outstanding amount which was left on your mortgage. At some point through some people’s life they may inherit money of which they may use to pay off their mortgage which would then mean you might want to lower the sum assured of your insurance as there is no point paying for insurance which is more than required.
Obviously if you feel you want to be insured for the extra amount that is your choice but the necessary changes would have to be considered by the insurance provider as not all insurance providers would typically action such changes. In some circumstances if you wished to increase the sum assured it may mean that you may have to take out an additional contract to cover you for the difference. Some insurance companies may allow you to increase the sum assured on the critical illness cover but there may be a limit to your sum assured or a maximum sum assured without any further medical evidence needed to support the value of the new sum assured against the life assured.