What can I add to my critical illness policy ?
There are six options which are available to applicants once they have chosen to take out a critical illness policy. These are as follows, Indexation, Premium Waiver, Fracture Cover, Reinstatement, Replacement and Total Permanent Disability.
Choosing the indexation option when taking out a policy can help to protect the value of the benefit amount over the chosen years. There are different indexations options typically they are increases in line with the Retail Price Index (RPI), Average Earnings Index (AEI) or by five per cent or by ten per cent. These automatic increases will occur on each anniversary following the commencement of your policy. Both the RPI and AEI increases are calculated based on average which would normally be twelve months over a fifteen month period. The premium increases may well be greater than your benefit increase as allowance is made for age and the remaining term of your benefit. Furthermore consideration will be taken of an insurers premium rates at the time. You have the right to cancel any indexations increases provided this is requested within thirty days of the increase.
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