Critical Illness

Critical Illness Cover

Critical Illness cover is usually available as an addition to all term assurance plans but can be bought on a standalone basis. Critical Illness Cover generally allows for the lump sum benefit to be paid in the event of diagnosis of specific critical illnesses, such as Heart Attack, Stroke, Transplant, Blindness, and Total & Permanent Disability etc. Most providers conform to the Association of British Insurers standards for qualifying illnesses and it is important that you fully understand the terms for each illness.

Critical Illness Cover is an insurance product designed to protect individuals from the financial effects of a critical illness. Product providers may be specific as to which illnesses they insure and it is important to be absolutely certain of this when considering the most appropriate critical illness provider.  As the terms and conditions of critical illnesses covered can be complex, professional help should be sought to ensure that you are able to protect yourself appropriately.

Critical illness policies may vary significantly between insurers, as some may cover more illnesses than others, in addition to some being more specific as to which instances of which critical illness is covered. Before securing a critical illness policy, you will need to be medically underwritten and insurers may also ask questions regarding your lifestyle and personal medical history. A policy generally pays out a defined lump sum upon diagnosis of a critical illness and a valid claim.

Our Advisers at David Nathan Associates are able to save you time and hassle in researching the policy that is right for you. We are able to go through the terms and conditions, making sure they are appropriate to your needs. In addition to this, we take care of many of the formalities associated with applying for critical illness insurance. Our role is to obtain the most suitable and cost effective policy for your needs and requirements.

Level Term Assurance

Pays a level lump sum in the event of death during the term of the policy. There is no investment element within a term assurance contract so at the end of the term there is no maturity value and life cover lapses. In the majority of cases, the benefit is paid tax free, but please note proceeds of a life insurance policy can be subject to Inheritance Tax if the policy is not set up correctly.

Decreasing Term Assurance

Works similarly to Level Term Assurance, but the benefit set at outset gradually decreases over the term of the policy. These policies can be used as cover for a repayment mortgage, or other loans where the amount of capital outstanding also decreases over time. Because the benefit reduces over time, premiums are kept very low but do not reduce.

Family Income Benefit

Works the same as term assurance, but instead of paying a lump sum upon death, it will pay a regular monthly tax free income to your dependants in the event of death up until the end of the term of the policy. (Please note: the proceeds of a life insurance policy can be subject to Inheritance Tax if the policy is not set up correctly).

Make an appointment today to discuss your Critical Illness Cover with us.