Should I add Critical Illness cover onto my Life Insurance policy?

Critical Illness insurance pays out a lump sum if the policyholder is diagnosed with a serious illness which is covered by the policy.

The list of insured illnesses is extensive ranging from heart attack to blindness and the results of the illness do not necessarily need to be terminal. The insurance indusrtry estimate that 1 in 5 men and 1 in 6 women will suffer a critical illness before their normal retirement age. (For a typical list of insured illnesses, see our FAQ entitled "What benefits will critical illness cover add to my life insurance policy?")

So you can see that critical illness cover can significantly increase your financial security if you were to add it to your life insurance.

If you choose a policy combined with life insurance, the insurance will only pay out once - either for the critical illness or for the life insurance provision. If you make a claim on critical illness, your policy terminates and you will not be insured. If you want your life insurance to continue after a claim, the only way to do this is to get separate policies. These work out more expensive but you do get better cover.