Should you consider Critical Illness cover instead?

If you have no dependants or already have Life Insurance, you should consider Critical Illness Insurance instead of Life Insurance.

Life Insurance with Terminal Illness cover pays out if you die or if you are diagnosed with any illness from which a Doctor expects you to die within 12 months. However, if you have no dependents you may consider it more important to provide for yourself just in case you become critically ill rather than later one when you might not be able to spend the money. After all with a critical illness (such as blindness) you could survive for many years and be unfit to financially support yourself. In those circumstances a tax-free lump sum from a Critical Illness policy would be a blessing.

If you want to be able to repay your outstanding mortgage if you became seriously ill, as opposed to if you were to die, Critical Illness Insurance provides what you need. Depending on your type of mortgage you will want either decreasing cover (for a Repayment Mortgage) or level cover (for an Interest Only Mortgage). These types of policies are more expensive than Mortgage Life Insurance or normal Life Insurance.

In the end many people decide to buy both Life Insurance and Critical Illness cover. The cheapest way to do this is through a combined policy.

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -

• You have a Repayment Mortgage. What sort of Life Insurance do you need?
• You have an Interest Only Mortgage. What sort of Life Insurance do you need?
• Life Insurance - why do you need it?
• What is the difference between Critical Illness Insurance and Terminal Illness Insurance?
• What conditions are considered critical?
• Go to menu of Frequently asked Questions about Life Insurance
• Go to menu of Frequently asked Questions about Mortgage Life Insurance
• Go to menu of Frequently asked Questions about Critical Illness Insurance
• Go to menu of Frequently asked General Questions