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| Critical Illness Insurance |
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| Critical illness insurance pays out a tax
free lump sum upon diagnosis of a pre-determined critical illness.
The illness must be a specified medical condition and covers such
conditions as cancer, heart disease, brain tumor and many more. |
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| Whereas a life policy alone will cover your
mortgage and provide protection for your family should you die, a
critical illness policy aims to provide you with the same protection
but will pay out upon diagnosis of a critical illness rather than
death. Statistically, up to the age of 65, you’re six times
more likely to get a serious illness than to die. |
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| For examples let's take a heart attack victim.
Imagine the possible consequences; being rushed to hospital and staying
there for a couple of weeks to recuperate, once out of hospital your
employer will more than likely sign you off for a few weeks or more.
If critical illness cover was in place the life insurance company
would pay out the whole benefit as a tax free lump sum which can then
be used to pay off the mortgage. So even though in this example the
person will probably return to work they will no longer have the burden
of a mortgage payment. In other instances a person may not be able
to return to work after diagnosis of a critical illness but at least
they will no longer have the burden of the mortgage. |
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