Critical illness cover with a life insurance policy is not a popular choice. The decision is mostly fixed on whether to take a critical illness policy or a life cover. What could be a more favourable solution?
The better way out that will serve you financially and mentally is going for both critical cover and life cover. But there is one important point you need to keep in mind.
Take critical policy as an extra with your life insurance policy. Avoid taking out a combined policy that includes both critical and life cover. Why?
Due to an unfortunate turn of events if you are diagnosed with a serious illness, then you make a claim as part of your critical illness cover. But with a combined policy that you may have taken, then after having made this claim and received funds would mean your life cover claim is over.
But if you had a critical illness policy as an extra with your life cover, then you will get the benefit of both policies.
Critical Illness Cover As An Extra Policy Makes More Sense
As a result of being diagnosed with a critical illness, you can lay a claim on your critical illness policy and get funds. If you pass away as a result of this serious illness and you also had a life insurance policy, then your family gets tax-free funds as part of your life cover.
Points to consider before you decide to take out a critical cover with life insurance.
1- The premium for a critical illness policy with life cover is costly, compared to just buying life insurance.
2- You need to be able to afford the premiums of critical cover. If you stop paying the premiums, your critical policy stops providing cover.
3- You need to know what serious illnesses are covered in your critical illness policy and what is not covered. The severity of the illness matters here.
Critical cover premium is more if you buy it at an older age.
Do consult with a trusted life insurance adviser about what would be the best option for your unique life situation. She will help you decide on the amount of coverage that would be right.