Sometimes an unexpected critical illness, disability, or a death occurs in our life. We want to be prepared and protected for these situations. This article talks about certain types of critical illness cover plans, companies that offer these types of critical illness insurance plans and basic costs paid monthly or yearly.
The price you pay will depend on a number of things, age being one thing they use to figure your costs. Some employers will offer critical illness cover with their insurance programs.
The critical illnesses that will be covered in your plan will be chosen when you apply for your insurance policy and you will choose how many years the coverage is for.
Some types of illness covers are:
- life cover with critical illness option
- life cover with children’s critical illness option
- life and critical illness cover combined
- life cover with disability option
- income protection with critical illness option or death
Life cover with critical illness option
This is like a life insurance policy that gives you the option to change or add critical illness into it later. The life insurance is paid in the event of your death to your beneficiaries. Most policies are fixed term policies.
You will choose how many years the policy goes for and the amount that will be paid in the event of any situation in which the policy is for.
Life cover with children’s critical illness option
This is similar to one for an adult but is for children. Most companies will have an age bracket for the child or children to be insured.
Life and critical illness cover combined
This can cover one individual or a couple. If one gets ill or dies, the policy will cover either one, as both will be listed on this policy. This insurance will be for life insurance and critical illness insurance.
Life cover with disability option
This is an insurance that is for critical illness coverage if you become ill. It will also cover you if you cannot work due to the illness or become disabled.
Usually this insurance only pays you between fifty to sixty five percent of what you earned and it can take anywhere from 5 weeks to 52 weeks before you begin to receive benefits.
It is a great idea to have some savings for the future to fall back on in case there is a time when you may need some income.
Income cover with a disability option or death
This is pretty much the same as having disability insurance. The policies and the guidelines are basically the same. Income protection will pay you a percentage of your income if you are unable to work due to a critical illness, paying approximately fifty to sixty percent of what your earnings were.
These benefits are tax free for personal individuals. For business owners or the self employed, the guidelines are a bit different. The company that you choose for this insurance will be able to explain everything to you when you apply for income cover with the disability option. You will choose the amount of years this plan covers just the same as life insurance cover.
The Average Cost Of Critical Illness Cover Insurance
There are several companies to choose form in the UK for critical illness cover. There is Prudential, Aviva, www.lifeassurance.com and many more. Most companies will have a place on their site for a free quote.
They should give you a quote from several different companies and they should find you the lowest prices. Once you receive quotes, it is a good idea to meet with the companies in person. This way you know they are legit companies.
The prices are all about the same with each company. The average cost of critical illness cover is about £50 per month. These prices could be a little more or less, depending on what your age is, family history, and other questions you may be asked when applying for insurance plans.
Some companies will ask you to get a physical. Receiving benefits may depend on the results of the physical.
Someone can get an insurance (assurance) plan to cover any event that may occur, whether it is an illness, or death, the family and yourself are covered. Some things are not covered with any of these plans.
Each insurance company is a bit different and will tell you what is not covered. An example of something that is not covered in these plans is alcohol or drug abuse.
My Personal Opinions
When I think about the costs to have this insurance, I may think the prices are a bit high, but when I think about it further, it is kind of like having a savings account. I cannot take any money out of this savings account though.
This money that I pay will go toward any event that may occur during my lifetime. It will protect me if I am working and come down with a critical illness. It will protect me if I become disabled. Other types of policies will cover children, family, mortgages or whatever plan is chosen.
Sometimes, it can be very frustrating to have to wait for benefits. After all, we pay these companies for many years for this critical illness insurance, but they do tell us ahead of time what to expect if an illness happens to us or our child.
If you can put away an extra ten to twenty quid each week while you work, it will add up and you will have some money just in case. This way you have two savings set aside for you and your family.
This I think, is a great feeling to know that no matter what may happen in life, we are okay. Our family will be okay, too. No one likes to think of the possibilities that someone may get sick or die, but it can be a reality, so it is so much better to be prepared than to have it happen and not have anything to fall back on.
The old saying goes, prepare for the worst and hope for the best. There are other cover plans one can get. Someone can get a cover plan to take care of the mortgage in the event of their death. You will choose which critical illnesses the plan will cover when you apply for the insurance.
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