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Scottish Provident Critical illness insurance is closely associated with life insurance and can be purchased together as a combined policy. Both are protection policies whereby they both will generally pay a tax-free lump sum; this is either on diagnosis of a serious illness or death. With a combined, critical illness with life insurance policy, the plan will only pay out once. Therefore, should you claim on a Royal Liver critical illness insurance policy or Scottish Provident critical illness component the policy will cease to exist. Life insurance is normally cheaper than critical illness insurance. Statistics show that we are more likely to suffer and survive a critical illness than we are to die before we reach retirement age. Therefore, the risk of a claim being made during the term of a critical illness plan will be greater than that of a claim on a life insurance plan. Insurance companies need to cover the added risk and this results in critical illness insurance being more costly. Generally, a combined policy will work out cheaper than purchasing the two plans separately. However, it always has to be remembered it will only pay out once.
Scottish Provident critical illness - Scottish provident critical illness insurance - Scottish Provident critical illness cover
The benefit amount (sum assured) and the term (number of years cover is required) affect the initial monthly cost of the plan. For example, the greater the benefit amount and/or the longer the term of any plan the greater the monthly premium will be. The initial premium, based upon the cover required, your age, gender and smoking status, is only an estimate of the price. To purchase the Scottish Provident critical illness cover, life insurance or a combined plan you will be required to complete an application form. You will need to provide further details to do with you lifestyle, occupation, health and family medical history. It is essential to be honest and disclose all relevant information; if you have any doubts about including something it is advisable to mention it. The information will be underwritten by the chosen company who will provide a final offer and price based upon any risk involved in providing you with the cover. If the information you provided was classed as posing no additional risk to the probability of a claim being made during the term of the plan then the offer will normally be the same as the initial estimated price. However, should you for example, have a pre-existing medical condition or family medical history that meant that you were considered as being at an increased risk of placing a claim during the lifetime of the cover, the company will either place exclusions/restrictions on the policy or increase the monthly cost.
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