The Factors That Need To Consideration When Buying Critical Illness Also Life Insurance
When considering taking out a critical illness or life insurance policy you will need to take into consideration a few factors. One main factor could be that you are taking it out to ensure that the loved ones you leave behind upon your death are left leading a relatively comfortable life style in the terms of money matters. When taking out this type of insurance policy you will need to consider just how much cover you actually need. Typically people often say the rule of this is to insure for ten times the amount the main earner brings home, this however can vary dependant upon the applicant’s circumstances. The main earner should consider how much the family rely on this wage and calculate how much they will need to insure for that way. You will also need to remember not to over insure or under insure. Over insuring can result in you being unable to pay your premiums and having to cancel the policy. With a critical illness policy should you die of an illness but not be diagnosed before the time of death and a claim was submitted after death for the critical illness to the insurance company, you would not be able to claim. This would be because the insured person did not have any life insurance on the policy even though the death was caused by a listed critical illness on the terms and conditions of the insurance company. If you can afford to it is always recommended that you take out a combined critical illness together with life insurance policy. This is because you are effectively covering both aspects of what could potentially happen to you. Typically insurance companies offer cover for approximately 36 critical illnesses. The amount of critical illnesses covered by different providers may vary dependant on the insurance provider that you choose. The standard conditions that are normally covered by the insurance providers are illnesses and conditions such as blindness, loss of speech, major burns, coma, and motor neurone disease, Parkinson’s disease, chronic lung disease, aplastic anaemia, encephalitis, brain surgery, major head trauma and many more.
If you are thinking about taking out a life insurance or critical illness insurance policy you may be aware that there are several different varieties and ways of doing this. First of all you can take out:
a. A stand alone life insurance policy.
b. A joint life plan.
c. A stand alone or a joint mortgage decreasing life policy.
d. A stand alone critical illness plan.
e. A joint critical illness policy.
f. A joint or a stand alone mortgage decreasing critical illness plan.
g. A single combined critical illness together with life insurance plan.
h. A joint combined life and critical illness insurance policy.
i. A single or a joint mortgage decreasing critical illness together with life insurance plan.
Which ever policy you choose or decide to take out will almost certainly need to be approved and accepted by the insurance company’s underwriters. This can take some time if you are required to have further evidence provided on your case. In some cases your application may be referred to the chief medical officer within the company. The ways an insurance company can do this is in the forms of:
. A telephone interview.
. A medical examination with tests such as blood, urine and saliva,
. A medical questionnaire from either or both the customer or the doctor.
. A full medical report from the doctor.
. A specific report relating to a condition either that is current or from the past from the doctor.
. Financial evidence from the customer.
. Occupational evidence from the applicant.
If when you submit your application to an insurance company and it is required to have any of the above procedures, there is nothing to worry about. The insurance company is just trying to gather as much information about your background as they can. This will help them to come to a fair and conclusive decision for both the applicant and the insurer. If you are not entirely truthful with your application, in the event of a claim being submitted you risk being turned down and having the claim declined.
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