Compare Critical Illness Insurance

Critical Illness cover can be provided by a number of companies in the protection industry. More specifically having a critical illness policy means that if you were to suffer from a critical illness the policy would then pay out a lump sum (benefit amount) at that point in time that was specified at the commencement date. There are two main types of cover which are available one being Level Term Cover and the other Mortgage Protection Term Cover. Level term cover is a fixed amount of cover which would stay the throughout the term of the policy and can be anything between five years to forty years. Mortgage Protection Term Cover is where the benefit amount will coincide with the rate of your mortgage therefore meaning once the policy has started the benefit amount will be decreasing in size with the rate of your mortgage.

There are two premium options one being a guaranteed premium which stays the same throughout the length of the contract or a reviewable premium which can go up, down or stay the same throughout the term of the policy. Whether the premium goes up, down or stays the same depends on a number of factors, such as how many claims they have had in the past five years, inflation rates, expenses etc. The guaranteed premium will typically be more expensive at the outset than the reviewable premium however the amount paid on a monthly basis is guaranteed to stay the same. The longer the term of the policy the better it would be to have a guaranteed premium rather than a reviewable premium as there are more possibilities of the premium increasing as it is reviewed every five years.