Both life and illness insurance can provide peace of mind in case of the unexpected. Here are some of the key things to consider when exploring options for life and illness insurance.

 

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Understanding life insurance

Life insurance can be one of the easiest ways to help protect your family/loved ones financially. It's a contract between you and the insurer, where you pay a premium each month. The insurer then pays a cash lump sum to your family and/or loved ones upon your death.

This money may help to cover funeral costs, debts, mortgage payments, and other day-to-day expenses.

 

Types of life insurance policies

The most common types of life cover are term life insurance and whole life insurance.

Term life insurance provides cover for a specific number of years. While it typically offers cheaper premiums, the policy only pays out if you die within the term. Premiums are fixed unless you can an increasing policy.

Whole life insurance is a type of permanent policy that provides cover for the entire life of the policyholder. Though it's usually more expensive than term policies, it offers greater peace of mind. Premiums are fixed unless you can an increasing policy.

Another type is joint life insurance, which covers two people, usually a couple or business partners. It can work out cheaper than buying separate policies.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

 

Benefits of life insurance

There are several benefits to having life insurance cover, including:

  • Financial security for family/loved ones in the event of unexpected death
     

  • Cover for funeral expenses and outstanding debts
     

  • Can assist with estate planning and inheritance issues
     

  • Peace of mind for you and your family/loved ones
     

  • Flexible cover and policy terms

Factors to consider when choosing a policy

Firstly, take into account your financial situation and the amount of cover you need. For example, a large family may require more cover than a couple with no children.

Consider the length of time you will need cover for. Also, think about any financial commitments you have, such as a mortgage.

Last but not least, think about your children/dependants and what support you may be able to give them in later life.

 

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Understanding critical illness insurance

Critical illness is a type of cover that pays a lump sum if you are diagnosed with a critical illness or injury. Unlike life insurance, it does not cover death.

What is covered?

Critical illness covers a range of illnesses and disabilities that may leave you unable to work. The most common conditions include:

 

Not all insurers cover the same illnesses, so it's important to check the policy you're considering. Waiting periods may also apply, depending on your medical history.

For example, if you’ve had cancer, the insurer will want to know about the stage and severity of the diagnosis. They may also want to know about any medication you take.

 

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Benefits of having illness insurance

Having critical illness insurance can reduce any worries you may have in the event of a serious illness. Here are some benefits of having this type of insurance:

  • Provides financial security in case of serious or terminal illness
     

  • Helps cover medical costs and other expenses related to an illness
     

  • Allows you to focus on recovery without worrying about finances
     

  • Offers peace of mind
     

  • Helps with everyday expenses, mortgage or rent payments

Choosing the right cover

Put simply, both types of cover should reflect your intentions for the future. You may want critical illness cover to protect yourself until retirement, whereas life insurance may be needed for longer.

When selecting a policy, consider:

 

When selecting a policy, consider:

  • The amount of cover required
     

  • Duration of the policy
     

  • How much cover you can afford
     

  • Your household income
     

  • Financial obligations you may have

If you are unsure about your options, speak to one of our advisers. They can provide expert advice on which product(s) may be best for your circumstances.

Take the time to research your options to ensure that you are prepared for whatever life may bring. Don't wait until it's too late to protect yourself and your family and/or loved ones. Start exploring your options today.

 

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 


01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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