|
Many people are unaware that they are six times more likely
to have a serious illness that requires hospitalisation or a
number of weeks off work, than they are to die before the age
of retirement.
It is therefore essential that you give the same or even greater
importance to arranging health insurance when you are looking
at life cover. In fact, it is now possible to obtain contracts
that cover you for both eventualities. By completing this very
simple fact-find, we can assess your needs and give you some
idea of the cost of covering yourself or your partner.
Permanent Health Insurance
This policy is designed to pay out a weekly or monthly amount
to replace A proportion of your income in the case of long-term
illness. However, there is a maximum of 50% of your gross pay
that can be covered by this type of policy. There is a deferred
period during which no money is paid which is normally between
4 weeks and 13 weeks. This period is normally covered by your
employer under your contract of Employment. However, the Deferred
Period can be as little as one day and as much as two years.
In many cases, the policy premium is paid for by your employer
to reduce their need to pay you during an extended illness.
There are various forms of these PHI contracts and you should
take advice from an independent financial adviser as to the
most suitable form before making the decision. In particular,
if you have a previous condition, then this may be precluded
from the cover given.
Critical Illness Insurance
These policies are designed to pay out a lump sum if you are
diagnosed with any one of a number of named serious conditions.
The conditions covered vary from company to company, but will
normally include Cancer, Heart Attack and Stroke. There will
frequently be a long list of other conditions such as MS, Motor
Neurone Disease, loss of sight, hearing and limbs, and others,
the details of which vary between insurance companies.
The important difference is that the sum is paid while you are
living to allow you to deal with your financial affairs, but
does not automatically pay out on death although his may be
included at a higher premium.
For companies with Key Personnel whose absence due to a serious
illness would cause a problem such as sales management or the
technical staff, then it is possible to insure against this
occurrence, where the compensation is paid to the company.
|
