You will find obvious differences between life and critical illness insurance. Yet they also share very common principles in the way by which they work. It is perhaps unsurprising, therefore , that some insurers offer a combined, two-in-one package of each life and critical illness insurance. The benefits of such a combined policy may prove a financial boon to both you and your family, so it is worth briefly evaluating how the two forms of cover operate tandem.
Both sorts of insurance have at heart the concept of danger to the individual – on the one hand associated with dying; and on the other, of being diagnosed with an illness. In each case this is actually the insured risk. In return for payment of a regular monthly premium, the insurance plan then guarantees the payout of the predetermined, single lump sum benefit.
Both in cases, the most common model is a “term insurance” form, in which the defined dangers are insured for a given number of years (the “term”). If you survive the insurance term, or if you survive it without being diagnosed with a critical illness, the particular insurer pays out nothing at all.
Both in cases, you choose the level of cover which is most suitable for your needs. If you are you looking for more information on Versicherungsmakler Kassel have a look at the internet site.
For many individuals, this is usually a balance between the estimated financial security required in the event of death or fatal illness and whatever can be provided in terms of the monthly premiums payable.
The most obvious difference, of course , lies in the type of the risks insured. In one situation, it is the policy holder’s life; within the other, it is the risk of that client being diagnosed with a critical illness;
The death of the policy holder during the insured term, naturally, requires no more definition. Just what is a “critical” illness, however , typically varies quite widely from one insurer to another. Each insurance provider publishes their own list of those illnesses and medical conditions covered by CI insurance, so it is obviously important to study thoroughly just what is offered by any policy in which you are interested;
In the event of the claim under a life insurance policy, the insured benefits are paid out to whoever you named as the beneficiary. Regarding critical illness insurance, the benefit is definitely paid directly to you, the client. Because of their close association, however , each life and critical illness insurance plan might be seen as playing their respective parts in securing your family’s future financial stability;
Combining life and critical illness insurance
The particular evident advantages of combined life plus critical illness insurance cover are twofold: the financial fallout from two major risks might be averted. For as long as the insurance is in place, you and your family are usually reassured that if you fall prey to a critical illness (as described in the policy documents), or even pass away, the level of cash benefit which you have chosen becomes immediately payable. It should be borne in mind, however , that in the conditions of such combined policies, just one potential payout is available. In other words, for those who have claimed the insured benefit of the particular critical illness insurance no more benefit is typically payable under the mixed policy in the event of your subsequent loss of life.