Term Insurance can include critical illness cover, life insurance or a combination of critical illness and life insurance together. This offers a few options for consideration.
Term insurance will cover critical illness. This type of plan is designed to pay out a cash sum should during the course of the term, you are diagnosed with a specific disease. For this to apply, the disease you have been diagnosed with must be covered in the specified list outlined by your insurer. Illnesses such as cancer, coma, heart attack, motor neuron disease, stroke, Alzheimer’s, HIV and AIDS are all normally covered by Term insurance.
Term Insurance on the basis of Life Insurance only, is a simplified method of protection which will pay out a specified cash amount in the event of your death, or if you are diagnosed as suffering from a terminal illness during the course of your term insurance plan. The list of terminal illness covered will be included in your documentation after a plan has been taken out or a copy can be requested before you make any decisions regarding a plan. Should a claim not be made for the duration of your term insurance, then once the term has finished no payment will be made and your policy will end.
The type of term insurance you decide on should also allow you the benefit of combining your life insurance and critical illness cover in the one policy. This plan would pay out a cash sum if you were to die, or if you have been diagnosed as suffering one of the specified terminal illnesses during the course of the term agreement.
The cost of Term insurance varies from insurer to insurer. Make sure you shop around for the best deal before you make any important decisions. The best deal does not necessarily mean the cheapest, so if for example there is a family history of a specific illness, then make sure this is covered in the list of diseases.
An example of the cost you can expect to pay is, Mrs Rogers is 30 years old and currently a smoker. She has one child and would like to make arrange supplementary life cover of £50,000 over a ten year period. This would normally cost Mrs Rogers around £19.10 per month.
General exclusions in regards to a Term insurance policy will normally include any existing illnesses which you had at the time of agreement. Only new illnesses which are diagnosed during the term agreement will be covered for a claim.
Most Insurance companies allow people as young as 15 and people as old as 79 to apply for insurance. Although this does vary from 54 to 64 depending on what term insurance package you opt for. The majority of policies will run for a minimum period of 5 years and can spread for a number of years depending on what level of term insurance is required.
There are several leading term insurance providers available including Scottish Widows, Norwich Union and Standard Life. Although looking around for the best deal is always advisable.
