Life Cover With Critical Illness

Life Cover with Critical illness cover can seem expensive but when compared to the costs of a life insurance policy over a number of years, then that cover is normally two to three times the price. The reason for this is that it’s much more likely that someone will suffer a critical illness than to die that term.

Critical illness is similar to life insurance, but rather than paying out a lump sum on your death, it pays out on the diagnosis of one of a number of listed serious illnesses or injuries.

Placing the life cover with critical illness policy in trust will ensure that the benefits are paid without delay to your intended beneficiaries. It can also ensure that should a death claim be made the benefits are not within your estate potentially saving 40% tax. If the policy provides life and critical illness cover the policy can still be written in trust so that in the event of a critical illness claim you get the payout but if you die your nominated beneficiaries do.