If you already know a few things about protection insurance and how it could help give peace of mind to you and your loved ones, a single policy that combines life insurance with critical illness cover might seem, in many ways, to be the perfect blend of protection.
After all, it would appear to cover the essential bases. The critical illness part of such a policy could directly protect you, by paying out a lump sum in the event of you suffering from a serious health condition specified in the policy, such as a stroke or cancer.
As for the life insurance part of such a policy, this could help protect your loved ones, by providing them with a lump sum if you were to pass away. This would give you the reassurance that your family - including dependents such as children - can be well looked-after once you are no longer around.
But aren’t critical illness cover and life insurance essentially the same thing?
This might be one of the biggest reasons why a lot of people don’t do a life and critical illness cover comparison with the help of a site like QuoteLifeCover; they wrongly believe that these two types of protection insurance are basically the same thing.
But as we’ve detailed above, the two types of cover actually exist for two very different situations.
Yes, there is overlap between the two, in that they can both help relieve financial pressure in the wake of a significant future life event. But critical illness cover is really about protecting you while you are still alive, by paying out a lump sum to give you fewer financial worries while you focus on treatment and recuperation.
That’s as opposed to life insurance, where it would really be your beneficiaries - rather than you, directly - who would benefit from the policy paying out. That money could enable your dependents to cover the costs of such things as the remaining payments on the family mortgage, and give them a source of income for everyday living.
Is there anything else I need to know about combined life and critical illness insurance policies?
As always with any kind of protection insurance, it is crucial to pay close attention to the specific terms of a given policy, and its implications for you and your family, before you purchase it.
It is worth bearing in mind that when you have a combined life insurance and critical illness insurance policy, you will normally be restricted to one payout on that policy. So, if you were to claim on the critical illness cover, it wouldn’t be possible for your family to claim on the life insurance part later.
You will also need to consider a wide range of other factors when you are undertaking a life and critical illness cover comparison to determine what kind of policy would best suit you and your household.
That will include consideration of exactly what is and isn’t covered in the particular policy, as well as the length of the term, whether the policy is on a level or decreasing term, and how much you are prepared to pay.
Bear in mind that if you are likely to be deemed a &lquo;high-risk’ customer by insurers - perhaps due to factors like being a smoker, or having a family history of heart attacks - there is a good chance that you will be charged higher premiums than those who do not present such risk factors.
If the above all sounds a bit overwhelming, it doesn’t have to be! Give our own UK advisers at QuoteLifeCover a call now, on 0800 316 6917, and you will be able to benefit from no-obligation advice and guidance, as well as a free quotation service, if you decide that you do wish to buy straight away. With our help, we can guide you towards the best-suited policy for your needs.