Are You On The Verge Of Taking Out A Critical Illness Cover?

By: Mike Armstrong
Here Are Some Things To know

Many people who suffer from a critical illness, for example myocardial infarction, may hardly live throughout the survival period. Thus the premiums to pay every month may depend upon the length of the survival period picked. Also, the survival period may be required so that a good assessment about the critical illness claim made could be carried out. But this may become practically impossible to do after the death of the insured. At this moment, an autopsy may be needed but in most of the cases relatives may not agree with the idea.

Furthermore, critical illness cover sales may have been rather important in the UK during the end of the 1990’s. Lots of companies may have had a major source of revenue by selling out critical illness policies. Young adults may have been mostly interested in buying critical illness policies due to the low rate of premium at an early age. Also, many people aimed at critical illness insurance as it paid direct benefits contrary to income protection or mortgage protection insurance.

Two common types of critical illness cover exist: Accelerated and Standalone. The accelerated critical illness cover meant that a segment of another insurance was added to provide further benefits. For example, critical illness insurance with mortgage. Results recorded down the years revealed that accelerated critical illness policies may have been more successful than standalone policies on an overall basis.

If we look back at the survival period, it may usually vary from fifteen to thirty days after the occurrence of a critical illness. But the survival period may also differ according to certain illnesses. Sometimes, the survival period may even be ruled out if the critical illness had been due to an accident. However, the survival period of a critical illness cover may demonstrate that it may in fact be a living benefit. On the other hand, if surgeries arise due to critical illness the insureds may have to bear the cost themselves. In this connection, the survival period may not play any role as the patient might either live or die during this time. As a matter of fact, a major medical expense may be required in this case. This may then be joined to the critical illness cover therefore making the MME pay for the medical expenses while the critical illness insurance could pay for other factors.

Additionally, critical illness insurance may be considered as a complex product due to its many existing aspects. The more critical illnesses a policy covers, the complicated it may end up to be. Therefore, the task may become difficult for agents as they have to assure that the potential customer understands the policy. The diseases to be covered may have to be explained to the customer. Thus, should critical illness occur after taking out of policy, a tax free lump sum may be awarded to the insured. In the past, critical illness insurance covered three major diseases: cancer, heart attack and stroke. Nowadays, policies may have started to provide cover for around 30 critical illness conditions. For example, Aplastic Anaemia may have been added to the list of critical illnesses covered.

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