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Critical illness cover is a form of insurance aimed to protect your finances in case you should suffer a specified serious illness. It will pay out a tax-free lump sum upon diagnosis of one of the conditions, providing that the definitions detailed in the terms and conditions are met. Critical illness cover is available from a number of different insurance companies such as Royal Liver, many of which offer other forms of protection. One such cover, closely associated with critical illness, is life insurance also offered by Royal Liver. Additionally, Scottish Provident critical illness insurance cover and life insurance can be purchased as a combined policy known as critical illness with life insurance. Life insurance is designed to pay out a tax-free lump sum to your beneficiaries should you die during the life time of the plan. Whereas, a combined plan such as Legal and General critical illness insurance with life insurance will either pay out upon diagnosis of one of the specified conditions or death. However, should a Royal Liver critical illness with life insurance plan pay out on a critical illness the whole plan will cease to exist and you will no longer have any life insurance cover.
Royal Liver critical illness - Royal Liver critical illness insurance - Royal Liver critical illness cover
The right plan for you will depend greatly upon your own personal circumstances. One of the most important questions that you need to ask yourself is how you would manage financially should you find yourself unable to work for any period of time. If you have a family and/or dependents how would they manage should you, if you are the main breadwinner, suffer a serious illness or die. These are the eventualities that you need to consider covering. The benefit amount (sum assured) and term (number of years cover is over) will also depend upon the answers to the above and your family situation. Finally, any form of protection you decide upon will need to fit within your available budget. If you are unable to keep up the monthly payments you will be taken off cover. Therefore, if you are unable to afford the protection you consider is required to cover the above eventualities it is still worth considering taking out some form of cover that will be financially manageable.
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