What are the major differences between critical illness cover and life insurance?

Life insurance cover and critical illness cover may share a lot of common principles but it is quite apparent that the two are poles apart. If you spare a moment to compare the two kinds of insurance policies then you would be able to notice the obvious differences. Now, it is not always about choosing either one of the two policies, if you find that you want the coverage of both the policies then you can go for a two-in-one or best-of-both-worlds kind of option. There are many insurance companies that offer such solutions therefore finding them won’t be a problem at all!

life insuranceThe most apparent difference between critical illness cover and a life assurance policy is the nature of the risks insured. In case of life insurance policy, it is the policy holder’s life while in case of the other policy, it is the chances of the insurance holder being diagnosed with some of critical disease or illness.

Another difference between the two is the meaning of the insured terms. While the term ‘death’ means the same in case of all insurance providers, the definition of the term ‘critical’ may vary from one insurance agent to another. This means that one insurance agent can consider a certain illness to be a critical one while another agent may not consider it critical. Therefore, if you are going for a critical illness cover then it is best to understand the prospective agent’s definition of the term ‘critical’ and the illnesses that are considered to be of critical nature by them.

The third major difference between the two policies would be the payment of insurance benefits. In case of a life insurance policy, it is the beneficiary who receives the payment of the insurance benefits after the death of the insured person. In case of a critical illness insurance policy, it is the policy holder that gets paid with the insured benefits. However, what’s common here is that both these policies are meant for the sake of securing the financial stability of the insured person’s family.

What are the benefits of comparing life insurance

There are several benefits to taking the time to compare life insurance companies and policies, here are a few of the main points to consider when shopping for life insurance;

1 – Firstly is the matter of comparing the policy prices. Some insurance companies will give you more for your money, and some will not. It is important to look at what is included when you compare prices on life insurance, because in alot of cases you will get what you pay for, and going with the cheapest is not nessessarily the best deal.

2 – Some employers offer such plans as part of employee packages, and so this is something to bear in mind if this affects you – are you getting the best deal or would you be better still taking out your own policy?life insurance

3 – Depending on age, health, and occupation, your needs for cover will be very different to another person’s. Therefore it is a must to read through all the small print and to take time over the comparison process, as this will give you the best idea of what insurer is for you.

4 – Read the small print. This is of the largest importance. Policies vary greatly and you need to know that you are covered. Is the plan a permanent one of does it have a shelf life? What are the exclusions? Does it automatically renew or is this something that you have to do manually? How do changes in your circumstances (especially health) affect your plan? All things to consider when reading.

It is beneficial to compare all companies, or at least the top used ones, before making large financial decisions, and in this case it is no different. There are plenty of websites around that specialise in helping people with this process, so take your time.

What are the best ways to get cheap life insurance?

People are always on the lookout for cheap products, be it financial products or other kinds of products. Therefore, it is not surprising that people expend extra energy in order to look for cheap life insurance policies. Life insurance is an extremely useful kind of insurance policy for those who wish to secure their future. This kind of insurance policy is particularly useful in case of bread earners because it provides their family with financial support should something happen to them.

life insuranceOne of the best ways of getting your hands on a cheap life insurance policy for yourself is to shop now! Don’t wait for time to pass and when you become a mature adult in order to purchase your life insurance policy because the sooner you purchase, the more affordable the insurance cover would be. Of course it is also important to rethink one’s priorities and take into account one’s current lifestyle in the process! For instance, if you are currently having a vice, like smoking or drinking, then you might want to purchase the insurance after you get rid of the vice in order to lower the cost. The same goes for people struggling with obesity.

Another fool proof way of hunting for a cheap life insurance policy would be to shop around and compare the rates of at least five life insurance providers. There is no point in jumping at the very first life insurance offer that you come across; you should take your time to browse through your options and obtain quotes from them for comparison purpose. Different companies will offer different quotes, therefore, your primary objective should be to look for a company offering great coverage at affordable prices.

Another way of getting inexpensive life insurance policies would be to purchase only those coverage areas that you need. If you do not require a comprehensive life insurance policy that covers almost everything under the sun then don’t go for it because you will only end up wasting money on useless and unnecessary coverage!