What options are available when taking out Critical Illness Insurance
When taking out Critical Illness Insurance there are additional options which you can choose to add to your policy. Typically you could choose to add the Indexation Option, Premium Waiver, Fracture Cover, Total Permanent Disability or/and the Reinstatement Option.
The Indexation Option is where you can protect the amount of cover you choose to take. Typically your chosen amount of cover could increase in line with for example the Retail Price Index to ensure you cover always suits your needs.
Also, the Premium Waiver Option could be added to your policy. This protection will ensure that should you be unable to work due to sickness or disability for six months (dependent on the provider), the insurer will continue to pay the premiums for your policy until such times as you return to work or the term of the policy expires. This would normally cost a few pence in addition to the standard premium.
Fracture Cover is also available to be added to a critical illness policy dependent on the provider. This cover offers small lump sums for fracturing one of a selected specified bone. The amount payable will tend to be limited to a maximum of £2,100 per year. Generally speaking only one claim will be allowable in any one year.
Total Permanent Disability can be added to your policy to ensure that the sum assured is paid out in the event of being diagnosed as totally and permanently disabled. This would be defined within your policy document; however, most insurers adopt the same definition. As total and permanent disability means different things to different people it is important for you to establish from outset if you are covered in the event of you not being able to do you own job or any job.
If you were to add the Reinstatement option to your policy this would mean that you would be given the option to take out a new policy once you have made a successful claim with your provider. The new policy will however limit the amount of conditions you are covered.
All options are provided at an additional cost to the standard premium.