Do you have life and critical illness insurance for peace of mind and financial security for your loved ones in the event that you were to pass away or become too ill to work due to a critical illness? While there is nothing you are able to do to change the fact that death comes to all of us at some time, we are at least able to leave this world knowing our loved ones are not left struggling financially. Life and critical illness insurance is and you are typically able to tailor the insurance to suit your finances and your lifestyle.
The types of life insurance to consider
Here are two of the most popular forms of life insurance you may wish to consider depending on your needs.
Term life insurance is one of the most common ways of protecting your life and is a simple choice for protecting your life. You choose the amount of insurance you need based on your circumstances and choose how long you wish to take out the insurance. If you were to pass away during the term of the insurance, your loved ones are paid the sum insured. If you were to outlive your life insurance the policy stops and no payout is made. Critical illness cover can also be added on to the cover Critical Illness Insurance. You may choose to take out life and critical illness insurance this way.
If you have a mortgage and want to ensure your loved ones had money to pay off the outstanding balance of the mortgage upon your death, then you might want to look into taking out decreasing term insurance. You insure the amount left to pay on your mortgage and take insurance out for the amount of years you have left to pay on your mortgage. As you continue paying the mortgage and it decreases so does the sum insured – so you are only paying for cover you need – ie enough to clear the mortgage in the event of your death.
If you outlive your insurance policy, you should have paid off your mortgage, and there is no payout on the policy, it expires. You are also able to add in critical illness insurance alongside this policy if you wish.
What is critical illness insurance?
Critical illness insurance as the name suggest protects against the possibility of you suffering one of the critical illnesses defined in the policy you choose. Life and critical illness insurance taken out together ensures that you and your family ultimate protection in the event of the worst happening.
Critical illness may be taken alongside life insurance or it is available as a standalone policy. A policy typically protects against numerous illnesses such as heart attack, stroke, or transplant of a major organ. It is essential to check with the provider to find out what illnesses are covered in your chosen insurance as these can vary among critical illness insurance providers. As many people are now living longer after being diagnosed with a critical illness, insurance may be very valuable. If you are disabled due to the illness and unable to work, the lump sum payout from the insurance policy will help give you financial security. It typically may help to pay bills, medical costs, and essential outgoings and may make life easier in general allowing you and your family to come to terms with your illness.