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FAQ Home | General Questions | Critical Illness Insurance | Life Insurance | Home and Contents Hot Topics
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.
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