We recommend you consider the following optional extras:
Critical Illness Cover, Waiver of Premium and Indexation to your life insurance policy.
Terminal Illness cover is usually added to your policy free of charge.
Critical Illness cover
With Critical Illness Insurance you will be covered for a long list serious illnesses
listed on your policy. Each Insurance Company has its own list of critical illnesses, but
we have supplied a typical list in the FAQ titled 'What benefits will Critical Illness
cover add to my Life policy?'
You can take out Critical illness cover by combining it with your life insurance policy
(which is the cheapest way to buy both insurances) or by taking out separate policies (this
gives you much more protection).
If you do add Critical Illness cover to your life insurance policy then be aware that
if the policy pays out because of Critical Illness, the policy is finished and will not
pay out again in the event of your death. If you want your life insurance to continue after
a claim for Critical Illness, then your only option is to buy separate Critical Illness
and Life Policies. This costs more but you have potentially two payouts.
Waiver of Premium
Waiver of Premium means that if you are off work as a result of illness or unemployment,
the Insurance Company will pay your policy's monthly premiums. It is not an expensive extra,
and is well worth considering as it could allow you to keep the policy in difficult circumstances.
Indexation
If you want your sum insured to increase in line with inflation then you need indexation.
Every year the insurance company calculates how much your cover needs to increase by to
match inflation, and they automatically adjust your policy. Your monthly premium will therefore
increase in proportion to the increase in your sum insured.
NB If you are protecting a mortgage you do not need indexation.
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