Life Insurance and Critical Illness Cover

This is possibly the easiest area to deem necessary.
If you have a critical illness – or die – will your dependents suffer financial loss as a result?

We can help you quantify the level and type of cover best suited to your circumstances, for example: to clear a mortgage, repay a business loan or personal debt; to make provision for inheritance tax; to replace income as a result of death or critical illness.

Life Insurance - the Options

Term Assurance

The most common type of life insurance is called term insurance. Term insurance is based on a simple concept: the insurer is guaranteed to pay the policy benefits if you die within a given period of time. If you survive to the end of this period, then no benefit will be paid. The policy term is chosen by you and can range from a few years to several decades; it is important that it coincides with your need for protection.

Term insurance is the least expensive form of life cover, and there are several different types: level term, decreasing term, convertible term, renewable term, increasing term and family income benefit.

Other types of life cover include ‘whole of life’ policies and ‘with profits’ policies. Whole of life policies guarantee to pay the sum assured on the death of the assured person when it occurs – in other words, there is no ‘term’ as with term insurance.

With profits policies are like whole of life policies, except the policy sum can be increased each year by the addition of annual or reversionary bonuses. A further terminal bonus may also be paid when death occurs.

Choosing which life insurance is best for you can be a difficult decision, so it is important that you contact us and speak to us in person before you make your choice.

This life insurance calculator will help to illustrate how much cover you may need.

Critical Illness Cover

Serious illness, such as heart disease or cancer, affects one in five men and one in four women before retirement age. If you become seriously ill before retirement, then critical illness insurance will pay out a tax-free lump sum, easing the financial pressures if you are unable to work.

What is covered?

Benefits are paid on the diagnosis of certain specified illnesses. The number of diseases covered has risen to more than 30, but this may vary from one company to another. However, 7 core conditions must be covered: cancer, coronary artery bypass, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. They will also pay out if a policyholder becomes permanently disabled.

The details

Cover providers allow people between the age of 17 and 70 to take out policies. These can be for a specified number of years, for example as long as your mortgage, or can run for an unspecified length of time. There is normally a 3-month waiting period after you take out your cover before you can claim.

If you are considering taking out cover, it is important that you do so as soon as possible: the cost of cover continues to rise and increasing restrictions are being imposed as medical technology improves.

Making the right choice

Choosing the right plan can be tricky due to the huge number of policies available. Don’t simply opt for the cheapest plan, since it will probably offer very limited cover. Similarly, don’t rush into taking out a policy that covers a very high number of diseases: it may not be appropriate for you, and may be merely an excuse to charge a higher premium. Again, it is a good idea that you speak to us in person before making any choices.