Why is it a good idea?
Combined Life and Critical Illness Protection is a combination of two core covers, so you can be sure you have all the cover you need should the worst happen.
This protection pays out once – if you’re diagnosed with either a critical illness, or a terminal illness where you’re expected to live less than 12 months, or if you die. So you can feel safe in the knowledge that your loved ones will be looked after financially during what could be an extremely traumatic and uncertain time.
It’s a fact that many people prioritise life protection over critical illness protection. However, your likelihood of being diagnosed with a critical illness before the age of 65 is higher than it is of you dying. In an ideal world, you need both. And that’s exactly what you get with Combined Life and Critical Illness Protection.
How it works.
Our Combined Life and Critical Illness Protection provides a financial payout to you or your loved ones if you die or have a critical illness while your policy’s in force. It covers you for a range of serious, life-changing conditions, including the three most common – heart disease, stroke and cancer. It also covers you for a permanent disability from an illness, accident, or if you become terminally ill.
Together with your Financial Adviser, you decide how long you want your policy to last, and the amount of cover you need – that’s the amount we pay out.
How high your premiums are depends on your age and health when you apply, but it’s worth remembering that the younger you are, the lower they’ll be.
What decisions do you need to make?
These days the family depends on both parents equally - whether you both work to meet the monthly commitments, or just one of you earns while the other carries out all the essential household tasks that keep the family going.
The truth is critical illnesses are indiscriminate. If one strikes a breadwinner the family will lose valuable income, and if one strikes a stay-at-home parent the family will need to pay for help, at additional cost, to cope with the upheaval to day-to-day life.
That's why, if you have a partner - whether they work or not - it pays to consider dual cover. Dual, rather than individual, cover pays out if either partner is diagnosed with a critical illness, providing the money to make the most difficult of situations easier for all involved.
What type of cover do you need?
With Level Cover, you choose the amount of cover you want and the length of time you want to be covered. The amount is fixed and you can also choose whether to receive a lump sum or a regular monthly payment.
Decreasing Cover is designed to cover mortgages and other long-term borrowing. So, as the outstanding borrowing goes down, so does the cover. Because of this, the premiums tend to be lower, and it also only pays out a one-off lump sum.
They say what goes up must come down. But what about the cost of living? That only ever goes in one direction, and it isn't south. So, to keep up with rising prices, the amount of cover you get with Increasing Cover rises in line with inflation. It's more expensive than both Level and Decreasing Cover, but what cost peace of mind? The payout options are the same as with Level Cover - one lump sum, or regular monthly payments - the choice is yours.
To find out exactly what suits your needs best, speak to a Financial Adviser.