Many people may be aware that life and critical illness insurance policies can often be taken out in both joint and single policies. There are as with anything, both advantages and disadvantages of doing each of these. For example if you were to take out a life insurance policy in a single name, you were to insure a total amount of money that you want or feel you need covering and then to decide upon a specific amount of years that you want the cover for. In the event of the policy holder dying the benefits of the insurance plan will be paid out to the remaining family subject to a claims confirmation.
If you were to take out a life insurance policy in joint names it works very much the same as the single plan, however as there are two lives insured the death benefit will only be payable upon the death of one life only. It doesn’t matter which life dies first unless at the time of inception the type of policy you take out stipulates. The policy document may read something like upon the death of the first life assured or the second life assured. This means that should something happen to the other life insured that they would not be covered as the policy will cease upon the first claim submitted. This may be seen as on of the main advantages of taking out two single life insurance policies versus a joint plan. This is a good thing to check when taking a policy out so that you know what is what. In some cases taking out two separate insurance plans can be a better option, but this can also be a little more expensive.
If you were to take out a critical illness policy this again is quite similar to a life insurance policy, however the benefits of the policy are only payable upon the medical diagnosis of a specified critical illness. The lists of critical illnesses payable are dependant on the insurance company. Typically there is a certain amount of critical illnesses that have to be covered by regulations that cover insurance rules; however after the required minimum insurance companies can add extra coverage to their policies. They vary in types of conditions covered and are also based upon a severity level. Upon request or a quotation you can get a copy of the insurance company’s terms and conditions covered.
This will be beneficial for you so that you can see exactly what is covered and as to the severity that would need to occur for a claim to be paid. Another reason why you may want to request the terms and conditions is so that if you were looking for a specific condition covered you will be able to read up on what is and isn’t covered. It is always advisable to insure for an amount of money that you can afford to pay for. By this I mean that you can afford the monthly premium. Always ensure it is worked out within your monthly budget.
It pays dividends to ensure the right cover is taken out for you and as your health and lifestyle can play an important role in the chances of developing a critical illness such as cancer for those who drink and smoke, to heart issues for those who maintain an unhealthy diet. Taking out a critical illness insurance policy with a background involving any of these activities means that you will face higher premiums than others who exercise regularly and eat the right foods. By changing your lifestyle you can lower your chances of developing a serious and critical illness and also ensure you pay much less for your premiums.
Author Resource:
Critical Illness Insurance is a company dedicated to providing the perfect insurance plan to ensure you are fully covered in the event that you are diagnosed with a debilitating and harmful illness recognised by numerous critical illness insurance companies.
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