Choosing an insurance policy for your or your loved ones life can be difficult enough without having confusing options put in place. One of the main options you have is taking out a critical illness insurance polcy or a serious illness one. Serious illness insurance can often be confused with critical illness cover but it is actually quite different. When thinking about insurance you will need to know and determine what you want from an insurance policy. Without doing this it can be hard to narrow down the type of policy that you want or need. First of all you will need to have an idea of how much you want and can afford to spend on a monthly basis, this will determine a. how much cover you can have b. the type of cover your should have and c. the time period you should have it over. Once you have decided upon these minor factors then you can start looking at insurance companies. There are a lot more companies out there that offers cover for critical illness as apposed to the serious illness cover. Finding the right company to suit your needs is essential as it is your life you are talking about so it needs to be just right in case something unfortunate does happen.
A serious illness policy will typically cover an individual for at least 154 illnesses and conditions if not more. It is known that if you have a serious illness policy that is more likely to pay the benefits of it out if a claim is made and is paid out on diagnosis rather than after the survival period. Serious illness insurance will typically pay out over and over again for different illnesses where as a critical illness policy will only pay out once for one condition and then the cover will terminate and cease. Unlike its fellow policy CIC (Critical Illness Cover) it will also allow pay outs based upon the severity of the condition. This means that proportions of the benefits can be paid out dependant on how severe the illness is.
Some of the basic information of a serious illness policy is that typically it has a minimum term period of 5 years and a maximum period of 50 years. Also there are no deferment periods on this type of insurance. These terms are based upon whether you have a guaranteed and reviewable premium and can vary dependant on the payment choice you choose. This type of policy is available for anyone from 17 years old to 60 years old and the maximum age that you can last apply for this type of cover is generally 65 years old. Typically it has been known that the minimum or least amount of cover that you can take out is ?10,000 and insuring up to a maximum of ?1 million. Critical illness differs considerably in comparison to the serious illness cover in terms of ages and monetary facts. When it comes to choosing the type of cover that you need you have a chose between primary and comprehensive cover. The primary covers approximately 100 conditions as apposed to the comprehensive which covers a maximum of 161 conditions. Both types of policies have a level of severity for pay out which is broken down in to A, B, C ,D, E and F. Severity A pays out 100% of the insured benefit, B - 75%, C - 50% , D - 25%, E - 15% and F - 10%. The primary level of cover only offers cover for the severity of a condition for A - D where as the comprehensive covers all severity levels. If you are struggling to decide what type of cover is better for you then you can always approach a financial adviser. They are there to offer help and advice and to point you in the right direction. Typically and insurance broker or financial adviser do not charge for this as they get commission form the insurance company itself. F you are looking at taking out a serious illness policy then may be the help from an advisor of some sort may be a good idea as it can be hard to find this type of product.
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