Combining Life Insurance and Critical Illness Cover could Leave you without Enough Protection.

Buying life insurance and critical illness cover together in one policy might seem like a good idea. Not only is it easier to set up one plan, but combining policies is normally cheaper. You will have a single policy which will pay out a lump sum if you die, or you suffer an illness covered by the plan during the term you choose.

Do you have enough protection?
I know it’s not a very cheery topic, but it’s important to understand the risks of under-insuring yourself. After all, wrapping different types of cover up into one neat plan could actually leave you without all the protection you need.

When you have combined life insurance and critical illness cover, you’re normally only able to make a claim once. Once you’ve made a claim for critical illness, the policy stops. You immediately lose the life insurance cover which was bundled into the same policy.

Worse still, arranging a new life insurance policy at this point could be very costly, since your health has deteriorated. You may find it has become impossible to buy replacement life cover at an affordable premium.

But if you have separate critical illness and life insurance policies, you can make two separate claims.

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Life insurance
Gilman Ciocia
Prime Capital Services