Life and Critical Illness Cover
When searching for a life assurance policy that includes critical illness cover, “life critical illness” is a typical search term. Most people who have a mortgage in the United Kingdom also have a life assurance policy. The reason for this is that it prevents having debt passed on to a partner if death occurs before the mortgage is fully paid.
This advice is very good. Would anyone want to contemplate having their life partner lose their home due to being unable to pay the mortgage with a single income? Many people who think life insurance is unnecessary believe that, if their partner died, they would just sell the home and move on to a place they could afford with only one salary. What would happen then? How much would they be able to afford with only one income? At current market rate, how much could they get for the home?
It doesn’t cost much to get life assurance. Is there any good reason to risk the loss of a home? However, according to statistics, it’s not uncommon for a person to die with an unpaid mortgage. Even more likely is the possibility of suffering a critical illness. Current cancer research predicts that the average person has a 1/3 potential for getting a diagnosis of cancer sometime before the age of 65.
Oddly, the majority of people prefer life assurance rather than life critical illness insurance. What is the reason for this? The clear answer is expense. You will have lower premiums if your untimely demise is not likely. In other words, if you will probably outlive your mortgage, your payments will be less. A person who has been at his job for 30 years won’t have to pay much for a £150000 life assurance policy, so it’s very wise to go ahead and commit to this expense. However, it costs more to have life critical illness because, obviously, you are more likely to make more claims with this coverage.
Most couples should get life insurance when they buy a property; however, this may not be so for a single person. Here is a good piece of advice: See what each of you can afford, and then be certain to have some life critical illness coverage in place.
People should not put off getting critical illness coverage. Statistics indicate that this sort of coverage should be high priority.
