Which optional extras should I include?

We recommend adding Critical Illness Cover, Waiver of Premium and Indexation to your Life insurance policy. You don't need to worry about Terminal Illness cover because this is included free of charge.

Critical Illness insurance

If you add Critical Illness cover to your life insurance policy, then you will also be able to make a claim if you are diagnosed with one of the critical illnesses listed on your policy. Each Insurer has its own list of critical illnesses and conditions, but we have included an example list at the relevant question shown below.
Critical illness cover is well worth having whether you combine it into your Life Insurance policy (the cheapest way to buy both types of insurance) or you have separate policies (which means you get a lot more protection).
If you decide to add Critical Illness cover to your Life Insurance policy then be aware that once the policy has paid out for a critical illness, there will be no provision for another claim to be made on the life insurance. The policy ends there and you will be uninsured thereafter. This is why you need separate policies if you want a guaranteed life insurance policy. This is more expensive but it's worth having if you definitely want the life insurance provision to remain.

Waiver of Premium

Waiver of Premium means that the Insurance Company will pay your policy’s monthly premium if you are unable to work because of illness or unemployment. It is not expensive, and is therefore well worth having because if you find yourself in difficult circumstances, you might not be able to afford to keep up the premium payments.

Indexation

Indexation means that your sum insured will increase at the same level as inflation. It protects the buying power of your sum insured. Every year your insurance company will work out how much your cover needs to increase by and your policy is automatically adjusted. Your monthly premium will therefore increase to cover the increase in your sum insured. Note that if you are buying Mortgage life insurance then you don't need to include Indexation.