Differences between Life Assurance and Critical Illness Cover in Braintree
Life Assurance
The most common form of Life Assurance policy taken out in Braintree is a Life Assurance Policy to run alongside a mortgage. This type of policy guarantees that, in the event of your death, your mortgage will be paid off in full. Some mortgage providers require this type of policy to be put in place when the mortgage is taken out. However, this is not the only type of Life Assurance available. You can take out a stand-alone Life Assurance Policy which will pay out a set sum in the event of your death. Both of these types of Life Assurance Policies have the benefit of ensuring that in the event of your death, your family will receive a sum of money which will either pay off the remainder of your mortgage, or provide a lump sum which your loved ones can use in order to continue making necessary payments towards living expenses. This can provide a great relief for your family who may otherwise struggle financially, at an already very difficult time. Whilst it is unlikely that the sum of money paid out will provide a long-term financial solution for your loved ones, it will certainly ease their financial burden for some time following your death.
Critical Illness Cover
Critical Illness Cover is different from Life Assurance in that it pays out a lump sum if you are diagnosed with a certain illness. This payout should ease your financial burdens whilst you are unwell. The lump sum can be used at your discretion, for example, to enable you to take time off work, cover payment for treatments not covered under the NHS, as well as cover expenses such as travel costs to specialist hospitals, or even pay for home help, or nursing care.
It is extremely important to seek professional advice before taking out a Critical Illness Cover Policy as these policies vary widely in exactly which illnesses are covered, as well as how much is paid out in the event of diagnosis. In the majority of cases once a payout has been made, the policy is then terminated. However, there are some exceptions to this. This is another reason that it is advisable to discuss your policy with a professional expert, in order to ensure that you are fully aware of what is covered by your policy, what is excluded from your policy and when payouts will be made.
It is often the case that the younger you are when you take out a policy, the more cost effective the premium will be, therefore whether in Braintree or the surrounding areas of Essex, if you would like to discuss taking out Life Assurance or Critical Illness Cover, contact Andrew Douglas Wills and Legal Services today.
Posted and maintained by Gareth Davies | B2B Webmasters
Written by Laura Richardson.
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