What critical illness cover options are available to me ?
When taking out a critical illness policy you can apply for both you and your partner on a joint policy or have to two single polices which ever best suits your circumstances.
Level Term Cover, this is a fixed lump sum which remains the same throughout the term of the policy which will be decided on once applying for this type of policy. Mortgage Protection Term Cover decreases each month, at the same rate as the capital on your mortgage. Typically you can choose for the term of the policy to be anything from five to fours years depending on your age.
Within either of these cover you can choose to have guaranteed premium or a review able premium. The guaranteed premium is fixed for the length of the term. The reviewable premium however will be looked at every five years. At the review the premium could increase, decrease or stay the same. The factors that can effect whether the premium increases, decreases or stays the same is whether the company assumptions on claims costs, investment income, inflation and expenses were correct at that time. If they are better than expected then the premium will be decreased if there expectation were right then it will stay the same if however there expectation were wrong and they had more claims than expected for example then the premium would be increased. The longer the term of the policy on reviewable basis the more reviews there will be and therefore there are more chances of the premiums altering.
There are also other options which can be added to a critical illness policy for example the Indexation Option, Fracture Cover Option, Premium Waiver Option, Total Permanent Disability and/or Reinstatement Option.
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